[Congressional Record Volume 153, Number 126 (Thursday, August 2, 2007)]
[Senate]
[Page S10780]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                             CROP INSURANCE

  Mr. GRASSLEY. Mr. President, my comments here today are to point out 
the importance of the crop insurance program to America's farmers and 
America's rural communities.
  Congress enacted legislation in 1980 that allowed for the expansion 
of the program and the involvement of the private insurance sector in 
the crop insurance program's delivery. Since this time, the program has 
grown from a small, experimental program to one that insures over 70 
percent of the eligible acres in the country. In many States, an even 
higher percentage of the eligible acres in the State are insured. In my 
home State of Iowa we have over 90 percent enrollment. This protection 
has come to be relied on by farmers and their lenders as a vital and 
necessary part of farming. For most farmers their crop insurance policy 
is the basis of their risk management, crop marketing and loan 
collateral.
  The success of the crop insurance program can be attributed to two 
key items. One is the support of the Federal Government. It is no 
secret that the Government supports the crop insurance program with 
premium subsidies that encourage farmers to purchase coverage and help 
pay for its cost. Additionally, rather than further increasing farmers' 
premium costs, the Government also pays for the delivery of the 
program. These Government expenditures, while not insignificant, are 
considerably less than the Government would likely spend in after-the-
fact disaster aid if farmers didn't use the program or if the program 
didn't exist.
  The second key item that has contributed to the success of the crop 
insurance program is the delivery of the program by the private 
insurance sector. Delivery of the crop insurance program by private 
companies, using local insurance agents, using modern technology, and 
with an incentive to do things right and earn underwriting rewards, has 
allowed for market penetration that was thought impossible by many. But 
it has occurred, and it continues due to the quality, timely and 
accurate service being provided to farmers by local agents and 
companies.
  I point out the importance of this program and its successes today, 
because this body is expected to consider this program during debate of 
the farm bill. It appears that despite successfully operating under 
separate legislation for years, the crop insurance program is being 
pulled into the farm bill discussions. The House farm bill has pulled 
money from the crop insurance program to offset other spending. I 
intend to analyze carefully the impact this House action will have on 
farmer's ability to manage their own risk. While I recognize there are 
improvements that need to be made to the program, crop insurance brings 
more stability to rural America.
  American farmers deserve a safety net that they can count on each and 
every crop year. As the Senate prepares to work on our farm bill 
provisions, I hope we recognize that crop insurance has become 
ingrained into the fiber of American agriculture, from the farmers and 
lenders that depend on it to the rural communities whose local 
economies are bolstered by it in hard times.

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