TOPIC | RISK MANAGEMENT


Vital Role of Crop Insurance Highlighted at CIRB National Meeting

February 2012

Speakers including the Senate Agriculture Committee Chairwoman and Ranking Member, the Risk Management Agency Administrator, and several industry leaders underscored the vital role of crop insurance as the cornerstone of federal farm policy during the 48th annual meeting of the Crop Insurance and Reinsurance Bureau (CIRB). The two-day meeting was held in Scottsdale, Arizona, and featured the following comments:

  • “We have heard loud and clear that crop insurance is one of the most critical risk management tools, embraced by farmers and producers in all parts of the country. We will continue working to strengthen crop insurance to make it available to more producers and to make sure farmers have the tools they need to effectively manage their risk.” –Senate Committee on Agriculture, Nutrition and Forestry Chairwoman Debbie Stabenow.
  • “This program has traveled leaps and bounds from where it first started, and it has now become the most important risk management tool in most producers’ toolboxes. Like CIRB, my goal is to maintain a robust risk management program that is delivered by the private sector, which is critical for providing jobs in rural America and excellent service to producers.” — Senate Committee on Agriculture, Nutrition and Forestry Ranking Member Pat Roberts.
  • “Crop insurance is a vital part of the farm safety net and has become an integral part of business life for a large majority of American farmers and ranchers. In years like this one, the value of this critical safety net is made clear.” –USDA’s Risk Management Agency Administrator William Murphy.
  • “Crop insurance literally saved my operation this year – I seldom have claims of any size, but the Mississippi River flood wiped out a lot of my crop. It’s a critical program that I have faith in, and the private sector delivery system is second to none.” — John McKee, Owner and General Manager, Westside Farms, McKee Planting Co.
  • “Support for crop insurance is at an all-time high – among policymakers and farmers. Without a doubt, crop insurance has a very bright future.” — Jim Wiesemeyer, Senior Vice President, Informa Economics.
  • “While policy development and positions among commodity groups are fluid, there is one point of agreement: crop insurance is a risk management tool that farmers cannot live without.” — Mary Kay Thatcher, Senior Director, Congressional Relations, American Farm Bureau Federation.
  • “In the crop insurance community, weather is at the forefront of everything that you do. Looking ahead at 2012 and what we might expect, it’s possible that volatility is the new standard, and natural disasters are just going to become one of the many expected costs of doing business.” — Drew Lerner, Senior Agricultural Meteorologist, Founder and President, World Weather, Inc.
  • “As a reinsurance intermediary, I can testify that commercial reinsurance is a critical component of the crop insurance program. While the Federal Crop Insurance Corporation provides some level of reinsurance support, the role of the commercial reinsurance community is essential.” — John Reinman, Guy Carpenter & Co., CIRB Board Member.
  • “Government clearly has a role to play in crop insurance by making valuable private sector-backed insurance policies available and affordable for all growers in the United States. Without this public-private partnership, farmers would be unable to meet the challenge should Mother Nature indeed give us another weather year like we just experienced.” — Sam Scheef, chairman, CIRB.