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PIA Opposes 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'...
June 30, 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.

"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 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!

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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