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New crop insurance legislation would update risk management in farm bill

Several Republicans on the Senate Agriculture Committee have introduced new legislation that would update crop insurance coverage in the new farm bill.

U.S. Senator John Hoeven from North Dakota says the bill called the Federal Agriculture Risk Management Enhancement and Resilience Act increases premium support for higher levels of crop insurance.

“For a fraction of the cost of what taxpayers will pay in ad-hoc disaster bills, you have the kind of coverage farmers need and know that they can count on. Both in regards with the challenges they face with weather, prices and trade.”

He says the bill also improves the Supplemental Coverage Option by increasing premium support and expanding the coverage level.

Senate Ag Committee Ranking Member John Boozman says risk management tools in the current farm bill need improvement.

“This is really a good step in the right direction. We’re interested in getting crop insurance where it works better.”

Boozman says reference price updates are also needed in the new farm bill.

The FARMER ACT also directs the Risk Management Agency to study how to improve SCO in large counties and doesn’t require producers to choose between purchasing enhanced crop insurance coverage or participating in commodity programs. Read a summary and more detailed language of the bill.

Hoeven’s office tells Brownfield a preliminary score from the Congressional Budget Office for the FARMER Act is $4.2 billion over 10 years.

This bill has the support of many state and national organizations including the American Farm Bureau, American Soybean Association and the American Sugarbeet Growers Association.