When the most recent federal budget included $3 billion in cuts (over 10 years) to crop insurance programs, you knew it was unlikely to stand.
Farmers—and farm state politicians—have some clout as it turns out.
This week, those farmers and their congressional allies are happy as previously cut funding has been restored. As is so often the way in Washington, the restoration of funding is part of a bill that has little or anything to do with farming or crop insurance. The funding is part of a highway bill, the Fixing America’s Surface Transportation Act, or FAST Act, which both houses of Congress passed last week, and which President Obama signed into law.
“Crop insurance is a cornerstone of farmers’ and our country’s agricultural success, which is why I’ve fought hard to maintain the integrity of this program both in the 2014 Farm Bill… and again now,” said US Sen. Heidi Heitkamp, D-ND, in a statement posted on her website. Heitkamp serves on the Senate Committee on Agriculture.
The North Dakota Farmers Union expressed appreciation for congressional efforts to restore funding. “With our struggling farm economy, it’s important that crop insurance and other farm programs remain whole,” said Union President Mark Watne in a statement on the group’s website.
The Crop Insurance and Reinsurance Bureau issued a joint statement with two other groups praising the effectiveness of crop insurance and decrying the kinds of things that might happen to crop insurance if the program were to be cut further. “The likely result of additional cuts would be increased industry consolidation, reduced choice in insurance providers for all farmers, and a dramatic decline in the availability and service of policies.”
Independent Insurance Brokers and Agents of America was quick to praise the new funding deal, posting this statement on its website: “Independent agents are the sole sales force for the program and act as experts and trusted advisers in helping farmers make educated decisions about protection for their livelihood. Not only does this insurance product provide adequate coverage for farmlands, it also reduces taxpayer exposure should a weather disaster strike. The Big ‘I’ will continue to support the program and the agent sales force which is the most efficient and effective delivery system.”
