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President's Budget Confirms Crop Insurance Essential to Farm Safety Net

SupportCropInsurance_webOn March 11, President Joe Biden released a proposed Fiscal Year (FY) 2025 budget that fully funds the Federal crop insurance program in recognition of the indispensable role that crop insurance plays in the farm safety net. The budget states that the “administration supports improvements to crop insurance, proactively managing risk from natural hazards, including the permanent authorization of the cover crop incentive program.”

The release of the FY 2025 Budget follows a January letter from more than 60 farming, banking, and conservation organizations asking the Secretary of Agriculture and the Biden Administration to protect crop insurance from harmful budget cuts. These organizations represent a wide swath of American agriculture, including both row crop and specialty crop growers, ranchers, farm lenders, manufacturers, and environmental advocates.

The organizations wrote, “Given the challenges faced by rural America and the critical nature of crop insurance, cuts to the program should be avoided. We urge you to continue to support America’s farmers and ranchers and oppose cuts to crop insurance during this year’s budget process, farmers, agribusinesses, lenders, and lawmakers agree that crop insurance is the cornerstone of the farm safety net and is crucial to the economic and food and fiber security of urban and rural America."

The American Association of Crop Insurers, Crop Insurance and Reinsurance Bureau, Crop Insurance Professionals Association, Independent Insurance Agents and Brokers of America, National Association of Professional Insurance Agents, and National Crop Insurance Services released the following joint statement on this impressive show of support from rural America for the Federal crop insurance program:

“America’s farm families face incredible challenges every day, including the threat of unexpected weather disasters. We’re proud that the certainty provided by crop insurance helps these families manage their risks and protects the world’s safest and most affordable food supply. Both the Biden Administration and Congress have repeatedly recognized the importance of crop insurance as the most critical element of the farm safety net, and we encourage them both to once again fully fund crop insurance.

“The crop insurance program works for farmers and taxpayers alike by:

  1. Providing predictable, within-budget assistance to farmers and allowing farmers to customize their policies to their individual farm and financial risk needs.
  2. Requiring farmers to share in the risk. Last year, farmers spent $6.8 billion to purchase crop insurance and then shouldered a significant portion of losses through deductibles.
  3. Complementing farmers’ efforts to invest in conservation and climate-smart farming practices.

“The Federal government spends less than a quarter of 1% of its budget on the farm safety net, including crop insurance, making this a worthwhile investment to protect the world’s most affordable and safe food and fiber supply.”

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Original Publish Date: March 13, 2024 | President's Budget Confirms Crop Insurance Essential to Farm Safety Net | National Crop Insurance Services (NCIS) |


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