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PIA Grassroots Action - Oppose the Proposed Crop Insurance Cuts

PIA members who sell crop insurance are under attack. For the first time ever, the USDA is suggesting placing a cap on crop insurance agents'...
July 7, 2010

PIA members who sell crop insurance are under attack. For the first time ever, the USDA is suggesting placing a cap on crop insurance agents' commissions! The government's final draft of the Standard Reinsurance Agreement (SRA) for crop is proposing another $6 billion in cuts, in addition to the previous $6.4 billion cut contained in the 2008 Farm Bill.

The draft SRA would impose a cap on commissions at 80 percent of the Administrative and Operating (A&O) subsidy to carriers under the program. This is the first time ever that the federal government has attempted to cap crop insurance commissions!

In response to the SRA, PIA issued a call to members and asked them to utilize PIA's Online Grassroots System to send a pre-written, fully-editable letter to the elected officials in Washington, D.C. The response was very high and urged Members of Congress to contact the White House and USDA to tell them that the final draft was unacceptable. Unfortunately, the president of National Crop Insurance Services (NCIS), which represents the 16 crop insurers involved in the program, is poised to accept it.

NCIS: "Companies Have No Choice"

"Our hands are tied," said NCIS President Bob Parkerson. "The companies have no choice but to sign this new Standard Reinsurance Agreement." Parkerson said he doesn't know exactly how the industry will adapt to the cuts but it's likely to result in lower commissions for the independent agents who sell coverage to farmers.

PIA is standing firm.

"It's not fair to expect crop agents to bear the brunt of these proposed reductions," said Dan Weber, Chair of the PIA National Crop Insurance Working Group. "Crop agents are not going to roll over and be railroaded on this. PIA will continue to work to have this changed."

Grassroots Action Alert on Crop - Ongoing: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.

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