Agriculture Department intends to farmers in crop insurance programs, complaints
Farmers abused up to five years of the disease struck yields of cereals have a message for best agriculture officials in Washington: farmers need better crop insurance.
“It is obvious that we have a lot of work to do,” said Ken Ackerman, head, the USA agriculture division’s Rick Management Agency.
Ackerman, 400 farmers and insurance agents in Valley City Eagles Club Friday. At the beginning of the day, more than 200 people attended a similar meeting in Crookston, Minn.
“The degree of coverage, we offer because of an erosion of revenue during the year is not working,” said Ackermann.
In addition to the erosion of income for insurance forms, farmers have complained that the areas under water is not sufficiently covered to avoid the crash. ” Others complained to the use of a low-yielding Landkreis average values in new formulas for the country. Others have complained about the protection of the crop insurance does not cover the quality discounts on the prices they can expect on the grain elevator.
A farmer testified that he had a loss of $ 50000, but has received only $ 800.
“We need policies that Cost-of-production,” said Gary Ihry, an insurance agent from Hope. “Many people, it costs $ 160 for one hectare of wheat growing, and we have assured that they are $ 105 or $ 110 per hectare.”
Ackerman said: “We in Washington can 1000 excuses why we can not do things - regulatory processes, the budget - all of these reasons are true. But we have back and discover what it takes do.
“This system works very well, if you use a normal distribution losses, a bad year every three or five. But if you have a situation like you in North Dakota with four or five bad years in the last seven It undermines the level of basic coverage, “said Ackermann.
The difficult part is to increase protection, but the returns of insurance is too expensive, he said.
“We, the figures in a few options,” said Ackermann.
One would be a compromise between unity and greater extent possible. In other cases, farmers willing to pay more for the coverage they need.
“The message that I heard, the strongest today, farmers want access to coverage if we could do in a way that the cost is reasonable,” he said.
Rep. Earl Pomeroy, DN.D., said a law, it would be a weak performance over the years during which the secretary of Agriculture, declared a disaster.
“The way the program works now is analogous to an automobile insurance - one or two Fender Benders and you pay a higher premium,” said Pomeroy. “In this case, one or two years of poor performance, and you do can not buy more, the coverage levels enough, you must protect your own risk.
“Of course, the program depends on the farmer for several years a cycle of loss. It was certainly with them over several years, no loss, as the premium collected,” said Pomeroy.
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