Crop Insurance Is A Good Investment

"We believe a lot of people are farming this year who wouldn't be without crop insurance," says Brandon Willis, administrator, USDA Risk Management Agency in a speech he gave to the Plains Cotton Growers annual meeting in Lubbock, TX.  It was covered by South West Farm Press.

Around 296 millions of acres in the US are covered by crop insurance.  It has saved many farmers from going under and many employees their jobs.

Farmers need to be aware of the new programs so they can sign up before later this year.  Farmers need to be educated on what works best for their area so they can choose the right plan for them.  Otherwise, there could be some problems.  As a matter of fact, the sign up date for Livestock producers started April 15th for disaster assistance.

In the fall, farmers need to update their production history and be ready for publications of farm program details.  By late fall they can choose between Price Loss Coverage (PLC) or Agriculture Risk Coverage (ARC).

In 2015 there will also be available a STAX program for Cotton growers and a Supplemental Coverage Option (SCO).

Beginning farmers, with less than five years in farming, can get benefits from a new program yield adjustments and a 10 percent reduction in premiums.  This will begin in 2015.

Any criticism of crop insurance is usually due to the lack of understanding how it works.  Most farmers are working today because of crop insurance.  And there are things in place to make sure farmers aren't taking advantage of it.  For example, the farmer must follow good farming practices and can't receive more than 85 percent of what they would have made without a disaster.  This makes sure farms break even and never make more than they would have normally.

It's good for consumers because it saves money.  It allows farmers to invest in new technology making them more efficient and productive.  Government likes it as well because it saves the tax payers dollars.