September 18, 2019

Crop Insurance (SRA); Climate Issues; Food Prices (FAO Report); Biofuels; USDA; and Financial Regulation

Crop Insurance- USDA-SRA

Yesterday, the American Association of Crop Insurers issued a statement on the release of the final draft of the 2011 Standard Reinsurance Agreement (SRA); in part, the statement indicated that, β€œThe draft of the 2011 Standard Reinsurance Agreement (SRA) as released by the Risk Management Agency (RMA) of USDA on Friday, June 10, is said to be the final version and, if implemented as is, it will be a serious blow to the continued effectiveness of the Federal crop insurance program. Despite repeated pleas from across the agriculture sector, this latest proposal from RMA would cut an additional $6 billion from the crop insurance program over the next 10 years. As a result, many farmers who depend on crop insurance to help manage the risks associated with their farming enterprises could suffer a loss of service as companies and agencies contract or consolidate.”

β€œThese additional $6 billion in cuts are being imposed by the Administration before the full implementation of the more than $6 billion in cuts imposed by the 2008 Farm Bill. Furthermore, this second $6 billion in cuts will be imposed in a period of time when RMA is implementing major administrative changes to the management of the program. The RMA should have completed these administrative changes and fully implemented the cuts mandated by the 2008 Farm Bill before placing additional financial and regulatory pressure on the delivery system. Instead, the Administration is abandoning caution and moving ahead with a second round of huge reductions in financial support and implementation of concepts not provided for review in the months and months of negotiations on the 2011 SRA.”