TOPIC | INDUSTRY INSIGHT WHAT'S CROPPING UP
5 + 5 = 10 Reasons to Support Crop Insurance
5 Keys to Crop Insurances Success
- Skin in the Game. Farmers design their own protection and pay for it through deductibles and premiums. In other words, farmers usually get a bill, not a check.
- Private-Sector Success. Private insurers and agents — not the government — sell and service policies. So, farmers get help in weeks instead of years. And because insurers shoulder part of the losses, taxpayers aren’t on the hook for 100% of the cost.
- Just-Right Assistance. Indemnities only cover verified losses — not too much, not too little — which makes crop insurance a helping-hand for famers instead of a profit center.
- A Safety Net for All. Crop insurance doesn’t pick winners and losers. It’s a risk management tool available to all farmers regardless of size, location, or crop choice.
- Lending a Hand. Banks use crop insurance as collateral for farm loans, helping producers obtain the capital needed to meet the rising costs of farming.
5 Fun Facts About Crop Insurance
- About 90% of U.S. farmland is insured, providing $100 billion in protection to more than 125 different kinds of crops in all 50 states. As a result, costly, taxpayer-funded disaster bills are a thing of the past.
- Farmers help fund their own safety net, collectively spending nearly $50 billion out of their own pockets on insurance coverage since 2000.
- Crop insurance has been approximately $3 billion under budget since the 2014 Farm Bill was passed.
- Instances of improper crop insurance payments in 2016 — a common measure of government program efficiency — were just 2%. That’s less than half the 4.67% average for other government programs.
- Following the 2012 drought, crop insurance saved 20,900 jobs in Iowa, Nebraska, South Dakota and Wyoming alone, according to Farm Credit Services of America.
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