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Grassroots Action Alert! PIA Opposes Proposed Crop Insurance Cuts

On June 16, PIA National initiated a Grassroots Action Alert to oppose the cuts that are proposed in the final draft of the new Standard...
June 22, 2010

On June 16, PIA National initiated a Grassroots Action Alert to oppose the cuts that are proposed in the final draft of the new Standard Reinsurance Agreement (SRA) for the federal crop insurance program. PIA National has distributed a letter to PIA members, suggesting they sign it and send it to their Members of Congress.

The final draft of USDA's Risk Management Agency's (RMA) Standard Reinsurance Agreement (SRA) for the federal crop insurance program includes proposed cuts of $6 billion over ten years. This is already on top of the $6.4 billion in cuts the program took in the 2008 Farm Bill, many of which have yet to be implemented.

"Cuts of this magnitude, as proposed in the final SRA, are a threat to our nation's farm safety net, all in the middle of one of America's worst economic recessions," said Dan Weber, Chair of the PIA National Crop Insurance Working Group. "This is especially true when you consider that the 2008 Farm Bill cut $6.4 billion from the crop insurance program. The additional $6 billion in cuts undermines the future of this risk management tool and the ability of insurance agents to sell it."

The SRA draft also sets an arbitrary cap on compensation that go to small businesses participating in the delivery of the program. The cap imposes limits on other forms of compensation, including profit sharing programs that many independent insurance agents depend on.

Click here to send a pre-written, fully editable message to your Members of Congress telling them you are opposed to the cuts in the crop insurance program that are being proposed in the draft SRA.

For additional information contact Mike Becker, Director of Federal Affairs at the National Association of Professional Insurance Agents (PIA National) at 703-518-1365 or mikebe@pianet.org.