WCN December 2019

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The Ins and Outs of CROP PROTECTION INSURANCE By JENNY HOLTERMANN | Contributing Writer FARMING TODAY IS FULL OF challenges, many of which are out of our control. When it comes to weather and mother nature, we are at their mercy as to whether or not a crop is harvested. Farmers are taking a risk every time they put a seed in the ground, plant a tree or invest in the future of their farm. Todd Snider, owner of Western Ag Crop Insurance Services has an optimistic approach to help: “the American farmer can control their risk with crop insurance.” History of Crop Insurance Crop Insurance first began in the 1930’s after the United States Congress authorized agriculture relief from the effects of the Great Depression and Dust Bowl, according to the United States Department of Agriculture. Mostly used for the Midwest for damage from rain or hail in their main crops, such as corn and soybeans. What was initially set up on a trial base, lasted until 1980 when the Federal Crop Insurance Act passed. With the passage of the 1980 Act, crop insurance was expanded to more crops and regions across the country. The United States Department of Agriculture Risk Management Agency (USDA RMA) explains, when the Farm Bills of the 1960’s and 70’s started to offer free disaster coverage, they were competing with the crop insurance coverage. Over the next several years Congress continued to pass more bills to add further relief to farmers. If a county or state’s crops were wiped out, the federal government would back up the risk and make large Ad Hoc disaster payments. Crop insurance became multi-peril, adding relief for wind, rain, heat, freeze, fire, and other such wide spread disasters. According to the USDA RMA, the 1994 Federal Crop Insurance Reform Act made participation in the crop insurance program mandatory for farmers to be eligible for deficiency payments under price support programs, certain loans, and other benefits. Catastrophic (CAT) coverage was created to provide farmers who were experiencing more than 50 percent losses a price at 60 percent of the average for that year. All for a rate of $50 per crop per county not dependent on acreage, the farmer covered the administration fee and the federal government covered the premiums. Privatized Crop Insurance Over this time frame, crop insurance also became privatized and independent Crop Insurance companies and agencies were formed. The independent agents were able to develop trust and build relationships with farmers. The federal government “I am here to help” motto wasn’t as easily accepted. In 1996, USDA created the Risk Management Agency (RMA) to administer Federal Crop Insurance programs as well as research and development. Today, this agency is the percentage and number setter who manages the prices for the independent agents to charge. Safety Net In a period of agriculture where we can’t control markets or weather, crop insurance provides farmers a sense of control. Snider, understands the concerns of farmers today, “Nowadays, Continued on Page 46 42 West Coast Nut December 2019
All the major weeds All the soil types All times of the year All the key tree & vine crops Weed control can be so UNCOMPLICATED Matrix ® SG herbicide makes controlling weeds easy. It provides pre- and early post-emergent control of important weeds like fleabane, marestail, filaree, malva, willowweed, annual bluegrass and Italian ryegrass on all the key permanent crops. There are no soil type or organic matter restrictions, and no dormant or non-dormant cut-off dates. You can even apply Matrix to young trees and grapevines that have been established for at least one full growing season. With Matrix, weed control is so uncomplicated. December 2019 www.wcngg.com Visit us at corteva.us ® Trademarks of Dow AgroSciences, DuPont or Pioneer and their affiliated companies or respective owners. Always read and follow label directions. ©2019 Corteva 43
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WCN December 2019

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