House Agriculture Subcommittee Hearing on Crop Insurance
DTN Ag Policy Editor Chris Clayton reported yesterday (link requires subscription) that, “Groups representing crop insurance companies and agents told members of a House Agriculture Subcommittee that USDA didn’t negotiate in good faith in a new Standard Reinsurance Agreement and that farmers will feel the effects of $6 billion in cuts the industry must absorb over the next 10 years.
“At a hearing on Capitol Hill on Thursday, representatives from the crop-insurance industry questioned USDA’s authority to demand such a steep fiscal cut and said services to farmers would end up being affected by the new contract. DTN/The Progressive Farmer watched the hearing through the House Agriculture Committee webcast.
“Rep. Leonard Boswell, D-Iowa, who chairs the Subcommittee on General Farm Commodities and Risk Management, said he was concerned by the level of cuts in the SRA due to cuts already made when lawmakers chopped $3 billion from the industry and also created a timing shift that will delay up to $3 billion in payments in 2012 as well. ‘We also must acknowledge that the crop insurance industry is a business, and both the companies and agents need to make a profit in order to stay in the market,’ Boswell said.”