Kendall Jones, President and CEO of ProAg, Speaks at Women in Agribusiness Summit 201709/28/2017
Kendall Jones, the President and CEO of ProAg, spoke at the Women in Agribusiness Summit 2017 in Minneapolis, MN, September 27, 2017. The breakout session was titled, “Crop Insurance – What You Need to Know.” As the introduction into Kendall’s session stated, “Like everyone else, we are trying to do more with less! Only 8% of the Farm Bill monies go toward the Federal Crop Insurance Program.”
Kendall’s spent more time in her session discussing the following questions with attendees, “What is crop insurance? Who pays for it and what does it cost? More importantly, what impact does Federal crop insurance have on all Americans?”
Quoting Kendall’s opening, “Farmers biggest risk to their business is Mother Nature. I’d like everyone to imagine you farm in southern Minnesota and planted 200 acres of corn. When you planted that corn in the spring, usually in May, you were counting on selling the corn and having gross revenue of, say, $100,000. It’s mid-July and the growing conditions have been ideal, perfect heat units and moisture. The corn is well over knee-high.”
She continues, “Mother Nature decides it’s time to hail and now you have 200 acres of mowed-down corn. Wiped out. No revenue – only the expense of putting it in the ground. Oh, and did you forward contract that with the elevator and now have an obligation to go and buy corn to meet your obligations for delivery?”
This is just one of many scenarios that stresses the importance of today’s American farmer relying on crop insurance.
Participation in multi-peril crop insurance has grown rapidly since the private sector began delivering it in 1981. Back then, only 45 million acres and $6 billion worth of crops were insured. By 2016, 1.2 million polices were sold protecting more than 130 different crops covering 290 million acres, with an insured value of $100 billion. More than 90% of insurable farmland in the United States is now protected through the federal crop insurance program.
The Federal program came to prominence – following years of costly, inefficient ad hoc disaster bills – as a way to speed assistance to farmers when they need it most, while reducing taxpayer risk exposure. Today, crop insurance is the cornerstone of U.S. farm policy.
To learn more about today’s crop insurance program, Kendall’s full presentation can be found here, “Crop Insurance – What You Need to Know.”
For more insight from Kendall Jones, please sign up to follow her blog, Our Growing Conversation, at https://www.ProAg.com/Kendalls-Blog.
Source: ProAg Communications & Media