Nevada County Picayune and Gurdon Times Newspaper Archive

Insurance Changes Made

Agriculture Secretary Dan Glickman has announced that crop insurance will be available exclusively through crop insurance agents, beginning in the 1998 crop year.

Previously, the catastrophic level of crop insurance (CAT) was available through both local USDA Farm Sercice Agency offices and crop insurance agents in 36 states.

Clickman said this decision was made after carefully reviewing the number of crop insurance agents in each state to ensure that an adequate sales force is in place to provide all farmers with CAT coverage. The 1996 farm bill requires USDA to transfer the sales of CAT coverage entirely to the private sector if a sufficient number of agents are available in each state to provide this service.

"While the sales and servicing of policies will be done by the private sector," Glickman said, "this change will not weaken the existing safety net for producers. I am determined that everyone will have access to crop insurance, large farmers and small farmers alike, especially those with limited resources, minorities and producers in all areas of the country.

"Before making this decision, private company representatives gave me their commitment to reach out to all America's farmers and to assure that the highest level of risk managment service is extended to everyone," Glickman said. "I look forward to this partnership. I also intend to exercise appropriate oversight over the companies to ensure complaince with their commitment."

USDA will continue to subsidize all policies, establish policy terms and conditions, set rates and guarantee funds for the payment of approved claims.

The transfer begins with 1998 fall planted crops. Policyholders will receive a letter informing them of this change in about one month. However, producers are to continue to go to the local FSA office for service on 1997 policies. This includes reporting 1997 planted acreage and production as well as any losses.

Although a producer's policy will be randomly transferred from USDA to an insurance company, producers may select another agent or insurance company if they do so before the sales closing date for the insured crop.

To ensure all eligible crops, insurance companies are required to insure all eligible crops, and provide all levels of coverage in the states in which they operate. Participating companies must insure all qualified applicants.

Waiver of administrative fees for producers who qualify as limited resource farmers is required by the Risk Management Agency and is available through private companies. Private agents are prepared to assist those qualifying producers with certification of their status.

A listing of local crop insurance agents is available in all FSA county offices.

For more information call 246-8652.