With the passage of the 2014 Farm Bill, crop insurance became the single most important risk management tool for America’s farmers and ranchers. Crop insurance helps make America’s farmers and ranchers world leaders in agriculture, allowing producers to stay competitive and be more innovative. It also helps them sleep better at night knowing that, should the unexpected happen, they will have the financial security to stay in business and go on to plant the next season.
As Nebraska farmer Quentin Bowen noted in an op-ed that appeared Lincoln Journal, “The speed of delivery of crop insurance — because it’s administered by private-sector companies — makes it a different kind of animal. In fact, if a natural disaster strikes and I’m covered by a crop insurance policy, typically the payment comes to me in one or two weeks, not in one or two years. Because of that speed of delivery, I can quickly recover from the loss and replant the field, garnering myself some needed income for the year and putting some food on the tables for consumers.
An available, affordable and viable Federal crop insurance program is a key component to the tremendous success of our country’s agricultural economy. There are twelve reasons why crop insurance is an essential business tool for America’s agricultural producers. Essential strength number one is “Producers Receive Individualized Risk Management Solutions.” Most farm programs are, in general, similar across all crops and producers, despite variations in an individual farmer’s operations. However, crop insurance allows farmers to customize their plans and coverage to accurately reflect individual losses and their unique yields or risk. To review the twelve essential strengths and watch real testimonials as to why they are important in the real world, click here.