New Video Explains Importance of Widespread Crop Insurance Participation02/16/2018
As the Farm Bill debate heats up, some farm policy opponents are lobbying to exclude people from crop insurance, which would harm farmers and taxpayers alike. That’s according to a new video released today by National Crop Insurance Services – the second video in its “Risk Management Minute” series.
Legislative proposals to apply an income means test to crop insurance participation could remove many farmers who have large farms, grow high-valued crops or work off-farm jobs.
“Doing so would only increase insurance costs for smaller farmers,” the video explains. “It’s kind of like preventing the safest drivers from getting auto insurance. The result would be an expensive wreck for farmers and taxpayers.”
The idea of shared risk – where premiums rise and fall with participation levels – is not unique to agriculture.
“Crop insurance is like other kinds of insurance,” according to the video. “The more people it covers, the more people there are to shoulder risk. And the more people there are to shoulder risk, the cheaper coverage is for everyone.”
Things get riskier and more expensive when participants are removed – especially insureds who carry less risk like the farms that are being targeted by farm critics.
“Congress made crop insurance a cornerstone of U.S. farm policy for a reason. It works. It’s efficient. It saves money. And it’s popular,” the video concludes. “No wonder so many farmers are saying ‘do no harm’ to crop insurance in the Farm Bill.”
Source: National Crop Insurance Services