A House Ag subcommittee held a farm bill hearing on Wednesday focused on crop insurance, which most farmers say is the most important risk management tool they have available.
Farmers testifying at the hearing say that after several black swan events, they and their lenders are more concerned than ever about how to protect their operations in these volatile markets. They suggested Congress needs to find a way to increase baseline funding to enhance the program, especially with the important role it plays in food security.
Farmers told lawmakers the risk in agriculture is much greater than it was when the 2018 farm bill was written. Today they’re facing 40-year high inflation and record high input costs. So, they need greater levels of coverage in crop insurance, but it still has to be affordable.
Lee Crowley, American Cotton Producers Board Member, says, “I think some premium discounts always would be something we could look at and other things that make it a little more affordable. As I was saying earlier I think crop insurance might be one of those things some people are forced to not participate in as margins get tight.”
Tom Haag, National Corn Growers Association 1st Vice President, says “We’ve just got to continue to push forward and make sure that the other politicians that don’t appreciate crop insurance, that we can convince them how important it is for the farmers because without inputs right now we have to have that safety net or that tool in order to continue farming in the next years.”
Committee members agreed that with the rising cost of farming and the increased geopolitical uncertainty the safety net crop insurance provides may no longer be adequate.
Rep. Tracey Mann of Kansas says, “But when you double, quadruple input prices and that same producer is falling from 40 feet. I think we need to discuss is the safety net the appropriate height off the ground moving into this farm bill.”
Rep. Austin Scott of Georgia added, “I believe that in the next farm bill one of best investments this committee can make is further enhancements to the crop insurance system that provide affordable options to increase coverage.”
There was also consensus that spending for ad hoc disaster assistance is not sustainable for the future.
House Ag Ranking Member GT Thompson also urged lawmakers to reject attempts from those pushing the climate agenda to hijack the crop insurance program is the next farm bill.
