WASHINGTON, D.C. – Today, the House Agriculture Subcommittee on General Farm Commodities and Risk Management held a hearing to review the crop insurance industry. Congressman Bob Etheridge from North Carolina is Chairman.   

“I am a believer in crop insurance, and I want to ensure that farmers, and taxpayers, are getting the best product for their dollar,” said Chairman Etheridge.  “As this Subcommittee takes up the task of reauthorizing federal farm programs, it is important to examine how crop insurance works with farm programs.  We have seen a host of proposals to dramatically change the current three-legged stool that is our basic farm program and we must tread carefully so as not to inadvertently harm the ability to provide adequate risk management tools that are available through crop insurance.”

The federal crop insurance program is a public-private partnership that provides producers with essential tools to manage the risks they face.  USDA’s Risk Management Agency (RMA) administers the program, which is overseen by the sixteen private-sector insurance companies that sell and service the crop insurance policies.

“The crop insurance industry represents a key component of the farm safety net for agricultural producers.  The program helps mitigate the inherent risk that is a part of agriculture and often provides the liquidity needed to endure significant crop losses. Although the crop insurance industry has experienced exceptional growth and success, issues still remain. I appreciated hearing ideas the industry has on how to improve the current crop insurance system as it is the Committee’s job to determine the best method of keeping crop insurance companies engaged in the industry, while responsibly using taxpayer money,” said Subcommittee Ranking Member Jerry Moran of Kansas.

This is the third hearing held by the General Farm Commodities and Risk Management Subcommittee this year. The subcommittee will be one of six House Agriculture subcommittees involved in reauthorization of farm programs in the Farm Bill, including the bill’s commodity title, Title I.  Many of the provisions in the current Farm Bill will expire in September of 2007.

The opening statements of all the witnesses are available on the Committee website at http://agriculture.house.gov/hearings/index.html. A full transcript of the hearing will be posted on the Committee website in 4-6 weeks.

Witness List:

Panel I

Dr. Keith Collins, Chief Economist, United States Department of Agriculture, Washington, D.C.

Administrator Eldon Gould, Risk Management Agency, United States Department of Agriculture, Washington, D.C. 

Panel II

Mr. Robert Parkerson, President, National Crop Insurance Services, Overland Park, KS

Mr. Steve Harms, Chairman, American Association of Crop Insurers, Johnston, Iowa

Ms. Kathy Fowler, President, National Association of Crop Insurance Agents, Memphis, Texas

Mr. Steven C. Rutledge, President, Farmers Mutual Hail Insurance Company, on behalf of The Crop Insurance Research Bureau, West Des Moines, Iowa

Home | News Room