What is in this article?:
Crop insurance will be top of mind as farm bill markups are revealed this week.
NCIS offers other pertinent facts, including:
- In 2012, farmers invested more than $4.1 billion to purchase more than 1.2 million crop insurance policies, protecting 128 different crops.
- Crop insurance policies protect more than 281 million acres, with insured acreage now equal to 86 percent of planted cropland in 2012.
- Farmers have spent more than $30 billion out of their own pockets to purchase crop insurance since 2000.
- To date, Kansas, Texas, California, Oklahoma, Nebraska and Florida lead the way in the number of crop insurance policies purchased.
Below is a brief summary of the crop insurance title to be included in the Senate markup of the farm bill.
Responding to the concerns of farmers across America, the Agriculture Reform, Food and Jobs Act of 2013 strengthens and improves coverage for all commodities and underserved crops like fruit and vegetables without making budget cuts to the crop insurance title. The bill also addresses the declining Actual Production History (APH) yield problem by increasing the county transitional yield.
Creates the Supplemental Coverage Option
The Supplemental Coverage Option allows producers to purchase additional coverage on an area basis. The coverage option establishes a trigger on coverage offered only if losses exceed 22 percent for producers enrolled in ARC and 10 percent for all other producers.
Expands Crop Insurance for Fruit and Vegetable Producers
Crop insurance coverage is expanded for underserved crops and regions, including fruit and vegetable producers. The bill provides additional assistance for underserved producers to partner with private developers of crop insurance to create improved insurance products. The bill also allows the Risk Management Agency (RMA) to conduct research and development on new or improved crop insurance products. It also creates a new partnership to expand access of index- based weather insurance products for fruit and vegetable growers who don’t have sufficient price or yield data for traditional insurance.
Provides Revenue Crop Insurance for Cotton and Peanut Producers
The bill creates a stand-alone revenue protection coverage program for cotton growers. It also creates a separate peanut revenue insurance with an effective price for peanut growers.