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Wednesday, March 13, 2013

ABA, Trade Groups Oppose Federal Crop Insurance Changes

ABA and 42 other trade groups told House and Senate members yesterday that they support strong, affordable crop insurance protection for farmers and ranchers, and they oppose crop insurance changes that would discourage producers’ participation or undermine private sector delivery.

“After a very challenging 2012 crop year, and with increasing demands for food, fiber, feed and fuel worldwide, it makes little sense to reverse the great progress Congress has made in providing crop insurance protection to producers,” the trade groups said in a letter.

They emphasized that federal crop insurance provides an effective risk management tool for farmers and ranchers of all sizes when they are facing losses beyond their control. It also reduces taxpayer risk exposure, makes hedging possible to help mitigate market volatility, and provides lenders with greater certainty that loans made to producers will be repaid.

“The public-private partnership of program delivery works very well, allowing for timely and outstanding service to producers when they need it the most and providing much-needed jobs across rural America,” the trade groups said.

Read the letter.