{"id":9216,"date":"2017-09-19T15:28:59","date_gmt":"2017-09-19T20:28:59","guid":{"rendered":"http:\/\/72.52.184.4\/~cropinsuranceina\/?p=9216"},"modified":"2017-09-22T13:44:33","modified_gmt":"2017-09-22T18:44:33","slug":"misleading-crop-insurance-attacks-hurt-americas-farmers","status":"publish","type":"post","link":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/","title":{"rendered":"Misleading Crop Insurance Attacks Hurt America&#8217;s Farmers"},"content":{"rendered":"<p>Agriculture&#8217;s opponents use terms like &#8220;guaranteed profits&#8221; to disparage the crop insurers that protect America&#8217;s food and fiber supply, help farmers pick up the pieces after disasters, and shield taxpayers from footing the whole bill through unbudgeted <em>ad hoc<\/em> disaster packages.<\/p>\n<p>These criticisms unfairly confuse basic business concepts like <em>gross returns<\/em> and <em>net income<\/em>. The <a href=\"http:\/\/portal.criticalimpact.com\/go\/1\/adc3b542e4edd66f766b5d60522e6026\/25838\/14bfd386eff19b49\/aa7ae7248d00ce303947229f28c3afba\">National Corn Growers Association<\/a> (NCGA) asked economists from the University of Illinois and Cornell University to <a href=\"http:\/\/portal.criticalimpact.com\/go\/1\/adc3b542e4edd66f766b5d60522e6026\/25838\/14bfd386eff19b49\/e09e7c61bbe48c4d3947229f28c3afba\">study<\/a> this issue in depth, and noted:<\/p>\n<p><em>&#8220;What we discovered is that the returns private crop insurance companies receive are much smaller than opponents claim, and they are well within the standards set by [the USDA].&#8221;<\/em><\/p>\n<p>It&#8217;s easy to see how this conclusion was reached once you compare the expected versus actual returns under the current Standard Reinsurance Agreement (SRA) \u2013 the business agreement between the government and crop insurers.<\/p>\n<p>The 2011 SRA set a target gross return of 14.5%. This measure of revenue does not include business expenses or reflect profit. But the target has not been met, according to the Government Accountability Office, which calculated returns of 13.7% from 2011-2016.<\/p>\n<p>After subtracting expenses like technology and compliance costs for government regulations, the net income realized by insurers is even lower, as the chart below from the NCGA study shows.<\/p>\n<table width=\"400\">\n<tbody>\n<tr>\n<td><strong>Year<\/strong><\/td>\n<td><strong>Net Income<\/strong><\/td>\n<\/tr>\n<tr>\n<td>2011<\/td>\n<td>11.3%<\/td>\n<\/tr>\n<tr>\n<td>2012<\/td>\n<td>-20.2%<\/td>\n<\/tr>\n<tr>\n<td>2013<\/td>\n<td>-0.7%<\/td>\n<\/tr>\n<tr>\n<td>2014<\/td>\n<td>3.0%<\/td>\n<\/tr>\n<tr>\n<td>2015<\/td>\n<td>13.9<\/td>\n<\/tr>\n<tr>\n<td><strong>Average<\/strong><\/td>\n<td><strong>1.5%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>*2016 data not yet available<\/p>\n<p>In other words, there are no guaranteed profits in crop insurance. In fact, crop insurers had underwriting losses in 2012, 2002, 1993, 1988, 1984 and 1983 \u2013 a far cry from other lines of insurance, which are historically more profitable than crop insurance.<\/p>\n<p>As a result, the crop insurance industry has witnessed consolidation and the exit of major agribusinesses since the implementation of the 2011 SRA. If farm policy critics are successful in their efforts to reduce returns by another 33%, other providers will follow suit, and farmers could be left without the tools necessary to manage falling crop prices and extreme weather events.<\/p>\n<p>Then, the burden of providing billions in disaster assistance will again fall squarely to U.S. taxpayers.<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>Agriculture&#8217;s opponents use terms like &#8220;guaranteed profits&#8221; to disparage the crop insurers that protect America&#8217;s food and fiber supply, help farmers pick up the pieces after disasters, and shield taxpayers [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":22,"featured_media":9226,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35,25],"tags":[],"class_list":["post-9216","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-insight","category-whats-cropping-up"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Misleading Crop Insurance Attacks Hurt America&#039;s Farmers - Crop Insurance Keeps America Growing<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Misleading Crop Insurance Attacks Hurt America&#039;s Farmers - Crop Insurance Keeps America Growing\" \/>\n<meta property=\"og:description\" content=\"Agriculture&#8217;s opponents use terms like &#8220;guaranteed profits&#8221; to disparage the crop insurers that protect America&#8217;s food and fiber supply, help farmers pick up the pieces after disasters, and shield taxpayers [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/\" \/>\n<meta property=\"og:site_name\" content=\"Crop Insurance Keeps America Growing\" \/>\n<meta property=\"article:publisher\" content=\"http:\/\/www.facebook.com\/cropinsuranceinamerica\" \/>\n<meta property=\"article:published_time\" content=\"2017-09-19T20:28:59+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2017-09-22T18:44:33+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/wp-content\/uploads\/2017\/09\/AdobeStock_53064783-cropped-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1795\" \/>\n\t<meta property=\"og:image:height\" content=\"1175\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Laurie Langstraat\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@UScropinsurance\" \/>\n<meta name=\"twitter:site\" content=\"@UScropinsurance\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Laurie Langstraat\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/\"},\"author\":{\"name\":\"Laurie Langstraat\",\"@id\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/#\/schema\/person\/7cf19e3fe01a682ddad2c6dbc59b30f1\"},\"headline\":\"Misleading Crop Insurance Attacks Hurt America&#8217;s Farmers\",\"datePublished\":\"2017-09-19T20:28:59+00:00\",\"dateModified\":\"2017-09-22T18:44:33+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/\"},\"wordCount\":341,\"commentCount\":1,\"image\":{\"@id\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/wp-content\/uploads\/2017\/09\/AdobeStock_53064783-cropped-1.jpg\",\"articleSection\":[\"Industry Insight\",\"What's Cropping Up\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/\",\"url\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/\",\"name\":\"Misleading Crop Insurance Attacks Hurt America's Farmers - Crop Insurance Keeps America Growing\",\"isPartOf\":{\"@id\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/wp-content\/uploads\/2017\/09\/AdobeStock_53064783-cropped-1.jpg\",\"datePublished\":\"2017-09-19T20:28:59+00:00\",\"dateModified\":\"2017-09-22T18:44:33+00:00\",\"author\":{\"@id\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/#\/schema\/person\/7cf19e3fe01a682ddad2c6dbc59b30f1\"},\"breadcrumb\":{\"@id\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/#primaryimage\",\"url\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/wp-content\/uploads\/2017\/09\/AdobeStock_53064783-cropped-1.jpg\",\"contentUrl\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/wp-content\/uploads\/2017\/09\/AdobeStock_53064783-cropped-1.jpg\",\"width\":1795,\"height\":1175,\"caption\":\"American country farm with silos against blue sky\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/homepage\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Misleading Crop Insurance Attacks Hurt America&#8217;s Farmers\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/#website\",\"url\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/\",\"name\":\"Crop Insurance Keeps America Growing\",\"description\":\"National Crop Insurance Services\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/#\/schema\/person\/7cf19e3fe01a682ddad2c6dbc59b30f1\",\"name\":\"Laurie Langstraat\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Misleading Crop Insurance Attacks Hurt America's Farmers - Crop Insurance Keeps America Growing","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/","og_locale":"en_US","og_type":"article","og_title":"Misleading Crop Insurance Attacks Hurt America's Farmers - Crop Insurance Keeps America Growing","og_description":"Agriculture&#8217;s opponents use terms like &#8220;guaranteed profits&#8221; to disparage the crop insurers that protect America&#8217;s food and fiber supply, help farmers pick up the pieces after disasters, and shield taxpayers [&hellip;]","og_url":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/","og_site_name":"Crop Insurance Keeps America Growing","article_publisher":"http:\/\/www.facebook.com\/cropinsuranceinamerica","article_published_time":"2017-09-19T20:28:59+00:00","article_modified_time":"2017-09-22T18:44:33+00:00","og_image":[{"width":1795,"height":1175,"url":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/wp-content\/uploads\/2017\/09\/AdobeStock_53064783-cropped-1.jpg","type":"image\/jpeg"}],"author":"Laurie Langstraat","twitter_card":"summary_large_image","twitter_creator":"@UScropinsurance","twitter_site":"@UScropinsurance","twitter_misc":{"Written by":"Laurie Langstraat","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/#article","isPartOf":{"@id":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/"},"author":{"name":"Laurie Langstraat","@id":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/#\/schema\/person\/7cf19e3fe01a682ddad2c6dbc59b30f1"},"headline":"Misleading Crop Insurance Attacks Hurt America&#8217;s Farmers","datePublished":"2017-09-19T20:28:59+00:00","dateModified":"2017-09-22T18:44:33+00:00","mainEntityOfPage":{"@id":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/"},"wordCount":341,"commentCount":1,"image":{"@id":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/#primaryimage"},"thumbnailUrl":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/wp-content\/uploads\/2017\/09\/AdobeStock_53064783-cropped-1.jpg","articleSection":["Industry Insight","What's Cropping Up"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/","url":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/","name":"Misleading Crop Insurance Attacks Hurt America's Farmers - Crop Insurance Keeps America Growing","isPartOf":{"@id":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/#website"},"primaryImageOfPage":{"@id":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/#primaryimage"},"image":{"@id":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/#primaryimage"},"thumbnailUrl":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/wp-content\/uploads\/2017\/09\/AdobeStock_53064783-cropped-1.jpg","datePublished":"2017-09-19T20:28:59+00:00","dateModified":"2017-09-22T18:44:33+00:00","author":{"@id":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/#\/schema\/person\/7cf19e3fe01a682ddad2c6dbc59b30f1"},"breadcrumb":{"@id":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/#primaryimage","url":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/wp-content\/uploads\/2017\/09\/AdobeStock_53064783-cropped-1.jpg","contentUrl":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/wp-content\/uploads\/2017\/09\/AdobeStock_53064783-cropped-1.jpg","width":1795,"height":1175,"caption":"American country farm with silos against blue sky"},{"@type":"BreadcrumbList","@id":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/misleading-crop-insurance-attacks-hurt-americas-farmers\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/homepage\/"},{"@type":"ListItem","position":2,"name":"Misleading Crop Insurance Attacks Hurt America&#8217;s Farmers"}]},{"@type":"WebSite","@id":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/#website","url":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/","name":"Crop Insurance Keeps America Growing","description":"National Crop Insurance Services","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/#\/schema\/person\/7cf19e3fe01a682ddad2c6dbc59b30f1","name":"Laurie Langstraat"}]}},"_links":{"self":[{"href":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/wp-json\/wp\/v2\/posts\/9216","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/wp-json\/wp\/v2\/comments?post=9216"}],"version-history":[{"count":0,"href":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/wp-json\/wp\/v2\/posts\/9216\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/wp-json\/wp\/v2\/media\/9226"}],"wp:attachment":[{"href":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/wp-json\/wp\/v2\/media?parent=9216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/wp-json\/wp\/v2\/categories?post=9216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/iripreviewsite.com\/cropinsuranceinamerica\/wp-json\/wp\/v2\/tags?post=9216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}