Proposed cuts in the crop insurance program are sending alarms through the insurance industry for both underwriters and agents, according to National Underwriter.
Under a proposal unveiled earlier this month, the Obama administration wants new cutbacks in the program that in addition to other recent action, would collectively reduce government involvement in the program by close to 30 percent.
“We definitely cannot live, without a doubt, with what they have suggested,” said Robert Parkerson, president, National Crop Insurance Services, the liaison to USDA’s Risk Management Agency (RMA). RMA represents the 16 carriers that provide crop insurance to an estimated 270 million acres of all crops grown in the U.S., an estimated 78 percent of all tillable land. The group also helps develop policies, claims procedures, research on new plants and new genetic seed processing for the agriculture industry.
“If this isn’t resolved, we have a tremendous problem on our hands, and so does the nation’s farmers,” Parkerson said.