 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
|
|
|
|
|
|
|
|
 |
 |
|
|||||
 |
 |
 |
 |
 |
 |
 |
|
Crop Insurance Reform
Enactment of the Federal Agriculture Improvement and Reform (FAIR) Act
of 1996 significantly changed the role and involvement of the federal
government in agriculture. While providing farmers with expanded planting
flexibility and new marketing opportunities, it has led to new demands
relating to risk management. Farmer cooperatives can play an important
role in helping their farmer members better manage such risks, provided
they have the tools to do so.
Currently, USDA regulations limit the ability of farmers to join together in cooperative efforts to purchase or obtain federal crop insurance and to fully realize any related cost-savings. Accordingly, legislation is needed that would address this. NCFC has been working closely with members of the House and Senate Agriculture Committees in support of such legislation.
The House approved September 29 legislation (H.R. 2559), the "Agricultural Risk Protection Act of 1999," containing provisions strongly supported by NCFC that allow farmers and ranchers to join together to purchase or obtain catastrophic coverage through their association or cooperative. In addition, as provided under Section 109 of the bill, such provisions also clarify the ability of associations and cooperatives to enter into joint marketing agreements with insurance providers on a fee basis.
In the Senate, several risk management bills have been introduced, including those by Senate Agriculture Committee Chairman Richard Lugar (R-IN) (S. 1666), Senators Roberts (R-KS) and Kerrey (D-NE) (S. 1580), and Senators Cochran (R-MS) and Lincoln (D-AR) (S. 1108). Hearings were held on the legislation in the Senate Agriculture Committee in October, and markup is expected by early March.
DFA believes that providing the opportunity for farmer cooperatives to be involved in the delivery system for federal crop insurance is essential to help expand coverage, encourage participation, and reduce the cost of the delivery system.
 |
I want to write my Congressional representative about this issue. |