As a dedicated provider of credit to rural communities and agriculture - in good times and bad - Farm Credit supports a strong federal crop insurance program. Created by Congress, the Federal Crop Insurance Corporation (FCIC) promotes economic stability. Crop insurance protects farmers and ranchers against financial losses caused by weather and market disruptions that could result in lower prices for agricultural products.
The program is a successful public-private partnership that is federally regulated and delivered by the private sector to help farmers maintain the country’s safe, affordable food supply. This viable program also allows lenders to finance many agriculture producers, particularly young and beginning farmers, who typically have less collateral and equity.
As Congress works on the next Farm Bill, Farm Credit will continue working with the House and Senate to ensure a strong risk management tool is included as a part of the farm safety net.
In particular, we believe it is critical for policymakers to maintain a strong farm policy that includes affordable crop insurance. Impairments to the program, such as shrinking the risk pool, could make crop insurance unavailable or unaffordable to producers.
We also advocate for more coverage options for specialty and niche crops, while continuing to serve the program's traditional commodities constituency.