Crop Insurance Measure Proposed

To encourage fair treatment of specialty crop and small farmers, Sen. Cory Booker (D-N.J.) and Rep. Andrea Salinas (D-Ore.) are proposing a new bill: the Insuring Fairness for Family Farmers Act (IFFFA). The measure changes the current compensation strategy for crop insurance agents. Instead of being paid a percentage of the policy premium, which can often favor agents working with larger farms, compensation under IFFFA would be calculated based upon the effort required to sell or service the policy. IFFFA also includes provisions for offering rewards to agents who provide insurance to previously uninsured farms or farms growing specialty crops, which traditionally require more work. Although the payment model is changing, lawmakers affirm the reform would be revenue neutral with an anticipated increase in agent commissions due to implementation of the bill.

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