Created by Congress, the Federal Crop Insurance Corporation (FCIC) promotes economic stability. It 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.
A viable federal crop insurance 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 crop insurance program is included.
In particular, we believe it is critical for policy makers 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 crop insurance providing more coverage options for specialty and niche crops, while continuing to serve its traditional commodities constituency.