South Dakota\u2019s history is deeply rooted in agriculture, perhaps more so than any other state in the union. From the homesteaders who came here in the 19th century, with little more than a plow and a dream, to their descendants who still work the land, agriculture is the way of life for many South Dakotans.<\/p>\n
As the president of the S.D. Farm Bureau and a livestock, corn and soybean farmer myself, I can tell you firsthand that our state\u2019s farmers personify a work ethic and a sense of pride and purpose that we are seeing less and less of outside of agriculture these days.<\/p>\n
But agriculture is more than just a proud tradition \u2014 it\u2019s also S.D.\u2019s top industry, with a $25.6 billion economic impact each year. Our farmers and ranchers generate 20 percent of our state\u2019s economic activity and provide jobs, directly and indirectly, to 122,000 residents.<\/p>\n
It\u2019s essential that we preserve S.D.\u2019s farm economy, not just for our own economic well-being, but for all Americans. Our nation\u2019s farmers play an indispensable role in ensuring a safe, affordable and stable food supply. And this role is becoming increasingly important as we struggle to meet the needs of a growing world population. In short, food security is a vital part of our national security and that\u2019s something we need now more than ever.<\/p>\n
Unfortunately, our farm economy has seen better days. Our farm families are facing a year of projected below-cost returns on corn, soybeans and wheat. Overall, farm income is also projected to decrease again in 2016. This will be the third consecutive year of declining farm income, following sharp drops in 2014 and 2015 totaling 56 percent in those two years. If the 2016 income projection comes to fruition, it would mark the lowest farm income level since 2002.<\/p>\n
This is why having a sufficient farm safety net \u2014 with crop insurance as the cornerstone \u2014 is more critical than ever. Crop insurance provides protection against the one thing that even the most resilient farmer cannot defeat \u2014 the wrath of Mother Nature.<\/p>\n
Crop insurance is a unique public-private partnership that not only supports farmers, but eases the burden on taxpayers. Prior to the emergence of crop insurance as the top risk management tool for farmers, natural disasters regularly resulted in very expensive, unbudgeted ad hoc disaster bills from Congress. Now, when disaster strikes, farmers receive an indemnity check.<\/p>\n
Let\u2019s be clear, crop insurance is not a handout \u2014 far from it. To gain coverage, farmers have to put skin in the game. In fact, since 2000, farmers have spent nearly $30 billion out of their own pockets to purchase crop insurance protection. We only collect an indemnity after we\u2019ve suffered a verifiable loss and met our deductible.<\/p>\n
We purchase crop insurance for our family farm every year and have never filed a major claim. But that\u2019s hardly the point. Like our fellow farmers, we purchase crop insurance for the same reasons we purchase home insurance or car insurance \u2014 with the hope we\u2019ll never need it. But we\u2019ll keep purchasing it every year because some day we might. Crop insurance gives us peace of mind, and if we ever experience a major crop disaster, would provide us with the resources to keep farming.<\/p>\n
Farmers have faced tough times before and rest assured we will get through them again. Old fashioned hard work, innovation and smart farm policies like crop insurance will help ensure that the proud S.D. farming tradition will live on for many future generations, and, in turn, will secure a bright future for us all.<\/p>\n