Investing in farm policy and crop insurance benefits all Americans, according to a new video released today by National Crop Insurance Services (NCIS).<\/p>\n
The two-minute educational piece was made public as Congress works to reverse harmful cuts to crop insurance made during last month\u2019s Budget Agreement.\u00a0 If those cuts remain in place, agricultural leaders fear it would cripple private-sector delivery of crop insurance, and with it a key component of the 2014 Farm Bill.<\/p>\n
Farm policy critics often use misinformation and misperceptions about agriculture to attack crop insurance, and NCIS produced its video to help combat those efforts.<\/p>\n
\u201cInstead of getting a check in the mail, farmers now get a bill,\u201d the video explained. \u201cAnd, because private insurers deliver the system and help shoulder risk, taxpayers aren\u2019t left footing the whole bill when disaster strikes.\u201d<\/p>\n
The $4 billion a year farmers now spend to buy insurance protection stands in sharp contrast to the days of direct government payments and $70 billion in disaster bills before crop insurance\u2019s rise to prominence, noted the video.<\/p>\n
The piece also tackled the often-misunderstood issue of private-sector returns for delivering crop insurance.\u00a0 Under a 2011 agreement between the government and crop insurers, 14.5 percent was targeted as an expected gross revenue.<\/p>\n
\u201cBut those returns aren\u2019t guaranteed and haven\u2019t materialized,\u201d NCIS said in its video.\u00a0 \u201cActual gross revenue turned out to be 5.7 percent \u2013 not even half the targeted amount.\u00a0 When you subtract expenses, crop insurers lost 1.4 percent from 2011 to 2014.\u201d<\/p>\n
The cuts included in the recent congressional budget package would lower returns by another 38 percent, further compounding private-sector losses and making it extremely difficult for crop insurance providers to stay in business.<\/p>\n
\u201cUnless this trend is reversed and the attacks on crop insurance stop, farmers will be left without the tools necessary to manage falling commodity prices and extreme weather,\u201d the video concluded.\u00a0 \u201cTaxpayers will be left holding the bill once again.\u00a0 And worst of all, because every American eats, every American will be harmed.\u201d<\/p>\n