[Congressional Record (Bound Edition), Volume 146 (2000), Part 4]
[Extensions of Remarks]
[Page 5315]
[From the U.S. Government Publishing Office, www.gpo.gov]



           NEW CROP INSURANCE OFFERS FARMERS MORE PROTECTION

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                           HON. DOUG BEREUTER

                              of nebraska

                    in the house of representatives

                        Tuesday, April 11, 2000

  Mr. BEREUTER. Mr. Speaker, this Member commends to his colleagues the 
following editorial from the April 3, 2000, Norfolk Daily News. The 
editorial expresses support for a new form of crop insurance which 
allows farmers to protect themselves against both natural disasters and 
low prices. This Member is pleased that legislation passed last year by 
the House makes many improvements in the current program, including 
providing additional assistance for producers to purchase insurance 
that provides protection from price or income loss, as well as 
production loss. This Member encourages expeditious action on resolving 
the differences between the risk management bills passed by the House 
and Senate.

              [From the Norfolk Daily News, Apr. 3, 2000]

                     Crop Insurance An Improvement


  With new insurance type, farmers can finally control part of their 
                               operations

       With the weather and market price swings completely out of 
     their control, an increasing number of farmers are embracing 
     one of the few things that can give them at least some 
     control over their income.
       It comes in the form of crop insurance but not the type 
     that most people think of. For years, crop insurance was a 
     way to insure against crop disasters caused by weather 
     debacles.
       The problem was that it often was expensive, didn't provide 
     complete coverage and many farmers shunned it, choosing 
     instead to hope that Mother Nature would cooperate and, if 
     that wasn't the case, that the federal government would come 
     through with emergency assistance.
       That kind of crop insurance still is available, but a newer 
     type--one that insures against price dips and weather-related 
     problems--is fast becoming the preferred option.
       That's partly because the federal government has chosen to 
     provide $400 million in additional subsidies, meaning the 
     premiums for crop insurance have been reduced by about 25 
     percent. A lower price for better coverage is the kind of 
     deal anyone needs to take a close look at.
       The other factor is the kind of insurance available. While 
     more expensive than the traditional type that insures against 
     weather-related problems, the new revenue coverage offers 
     farmers more peace of mind in that it guarantees an income 
     level regardless of what happens with the weather.
       It also provides more marketing flexibility for 
     participating farmers and even could provide some 
     supplemental income during a bumper crop year--assuming 
     market prices are low as a result.
       If that sounds too good to be true, there's more. Although 
     government subsidies have increased for crop insurance, it is 
     predicted that if enough farmers take advantage of the 
     insurance options available to them, there will be 
     significantly less chance of the government having to provide 
     emergency bailouts because of droughts or other conditions. 
     Those usually are more expensive to taxpayers than the 
     subsidies.
       Farming always has been one of the highest risk occupations 
     in terms of financial results.
       If this new type of crop insurance can help reduce that 
     risk, while also reducing emergency expenditures by the 
     federal government, then virtually everyone should benefit.

     

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