From Acorns to Zucchini

As seen in: Property Casualty 360 4/25/2012 By Melissa Hillebrand

There is a federal insurance program in place that insurance agents use that specialize in Agriculture Insurance.  Throughout the years this insurance program has gone through many different changes like cut backs like a lot of other programs are going though as well.  The Federal Crop Insurance Program’s (FCIP) current bill with the Congress expired this September and that may mean even more cut backs for the program. Originally when the program was created during the depression era to help those farmers recover from the damages that occurred from the Dust Bowl.

The 2012 farm bill that is  before congress would take the place of the current legislation that was passed back in 2008. The legislation that was passed in 2008 made it so that there was a reduction in the appropriation that is given to insurers that  sale and serve crop insurance policies and the administrative fees  for coverage with the policies are increased for farmers.  The National Association of Farm Service Agency (FSA) County Office Employees (NASCOE) wants Congress to replace the private insurance agents with federal government employees (FSA), although there is much debate over where or not federal employees or private insurance agents should be the ones that handle the policies.

Although there is a significant amount of fear surrounding the Obama administration proposed plan to decrease the amount of subsidies to the industry by $8 billion over the course of 10 years, a reduction of ROI for crop insurers to 12% and having a reduction in producer-premium subsidies and how these changes will in turn affect farmers.

Contact Scurich Insurance Services today about any questions regarding  Agriculture Insurance or your Agriculture Insurance Policy today!

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