Is the federal crop insurance program keeping up with climate change?

Crop insurance - A person touching wheat

Few changes have been made in the program despite rising risks associated with global warming. Risk has always been a part of farming, particularly due to its dependence on the weather in any given season or year, and crop insurance has become a key part of the survival of many farms across the United States. That said, risks associated with weather have been changing, but the program has altered very little. The massive federal crop insurance program has helped farmers to ensure their businesses survive in times of flooding, drought,…

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Crop insurance program, food stamps prepare for “significant” budget cuts

us crop insurance program

The USDA is getting ready for sizeable funding cuts for social and rural programs. With the proposed Trump administration budget has come a threat to many USDA services, including the crop insurance program. That coverage risks significant reductions, as do food stamps, and rural development programs, among others. The proposed cuts to the crop insurance program and others operated through the USDA are far from modest. “I don’t think there’s any reason to try to sugar coat this,” said Sonny Perdue, USDA secretary. “I’ve communicated with our team at USDA…

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Private crop insurance companies see shrinking returns

private Crop Insurance

These insurers have experienced a notable drop in their returns since the SRA was renegotiated in 2010. Private crop insurance companies are experiencing a notable downward trend in their return figures. This has been a consistent situation since the Standard Reinsurance Agreement (SRA) was renegotiated in 2010. The SRA renegotiation between insurers and the federal government marked a significant change in the direction of that business. The change in returns have also aligned smoothly with the Risk Management Agency’s benchmarks. The U.S. Department of Agriculture’s Risk Management Agency laid out…

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Last year saw crop insurance payments plummet

crop insurance rules

Since 2014 saw pretty good production throughout the year, the federal program had to make far fewer payouts. In terms of the overall 2014 growing year, the calculations by the Risk Management Agency of the U.S. Department of Agriculture with regards to the federal crop insurance program have shown that last year saw a reduction in payments by 26 percent when compared to the figures from the year before. The agency report showed in 2014, there was a total of $8.8 billion in payments for yield and price loss coverage.…

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Crop insurance report criticizes federal incentives

private Crop Insurance

An environmental group has released the data which has indicated FCIP’s structure is flawed. A report has just been released by the National Resources Defense Council, which has criticized the very structure of the Federal Crop Insurance Program (FCIP), despite the fact that the payments that the program has been making are vital to the financial survival of farmers across the country. Last year’s drought brought about payments that reached record heights, breaking the $17.3 billion mark. The National Resources Defense Council report contained the results of a study. It…

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