federal crop insurance program

Farming is in my blood, and I’m proud of that. I grew up on my family’s sheep ranch in northern Utah and managed our raspberry farm before coming to USDA. For the past three years, as Administrator for the Department’s Risk Management Agency (RMA), I’ve sat across the table and listened to producers who, like myself back in Utah, couldn’t find an insurance product for their operation.

Natural disasters and unexpected events make agriculture a risky business, so having a strong safety net is essential for today’s farmers and ranchers. Nobody knows that better than RMA.

Teamwork can improve virtually any endeavor, from partnering with a neighbor by exchanging butchered meat for hay to feed the rest of the herd or simply sharing a ride to save on gas.  The result is usually savings and efficiency.

At USDA, that notion is taken to another level with public-private partnerships that improve economic stability for producers, the financial sector, and a nation that leans heavily on the shoulders of its farmers and ranchers.

Agriculture is an inherently risky business. Some risks are everyday business risks; some risks are brought on by natural disasters. Producers need to regularly manage for financial, marketing, production, human resource and legal risks.

Helping farmers and ranchers overcome such unexpected events, not only benefits individual producers, but also rural communities that depend on agriculture. Over time, resilient rural producers help form robust rural economies, which build a strong economic foundation and provide improved access to credit for the next generation of beginning farmers and ranchers.

 The U.S. Department of Agriculture (USDA) is reminding producers to file a Highly Erodible Land Conservation and Wetland Conservation Certification form (form AD-1026) with their local USDA Service Center, either by filing in person or postmarking today, June 1, 2015.

The 2014 Farm Bill requires producers to have the form on file in order to remain eligible or to become eligible for federal crop insurance premium subsidies. Many producers already have a certification form on file since it’s required for participation in most USDA programs including marketing assistance loans, farm storage facility loans and disaster assistance.

As consumer demand for fresh fruit and vegetables increases, so do the production risks for the nation’s farmers as they grow these crops.  To meet this challenge, the Risk Management Agency (RMA) pays close attention to the changing agriculture sector to ensure that crop insurance is made available where feasible.

A tremendous amount of work goes into offering a new insurance product, making sure that the product provides the coverage needed by growers at a reasonable premium without distorting the market or affecting a grower’s management decisions for the crop. New insurance products must have written policy, underwriting and loss procedures, as well as an actuarially-sound premium rate. The ability to innovate with new and expanded insurance offerings to reflect modern and changing farming practices is central to how the Federal Crop Insurance Program works.

We have a tremendously productive agriculture sector in the United States. In my lifetime, agriculture production has tripled. In 1950, a dairy cow produced about 5,300 pounds of milk each year; today, it’s 22,000 pounds per year.

Agriculture Secretary Tom Vilsack met face-to-face last week with about 40 farmers, ranchers and producers from Iowa and Nebraska impacted by flooding along the Missouri River.  The Secretary promised the group he would stay until every question had been answered and every concerned voiced – and he did just that, engaging in a dialogue that lasted more than two hours.