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Crop Insurance Is a Vital Risk Management Tool

Crop insurance is vital for our nation’s farmers. For example, Purdue University agricultural economist Chris Hurt says crop insurance indemnities — which totaled $1.04 billion in Indiana for 2012 corn, soybean, and wheat losses, according to the U.S. Department of Agriculture — have helped communities in rural Indiana remain economically healthy...
May 29, 2013

Crop insurance is vital for our nation’s farmers. For example, Purdue University agricultural economist Chris Hurt says crop insurance indemnities — which totaled $1.04 billion in Indiana for 2012 corn, soybean and wheat losses, according to the U.S. Department of Agriculture — have helped communities in rural Indiana remain economically healthy. In Indiana, farmers received $3.47 of insurance indemnity for each $1 paid in premiums for corn and $1.09 for soybeans. Around three-quarters of Indiana's crop acres were insured last year, and the state’s farmers believe crop insurance is an important risk management tool. “These crop insurance indemnities are the primary reason the state's farm sector income has not collapsed under drought losses.”

With the Farm Bill set to be debated on the U.S. Senate floor, Indiana Farm Bureau President Don Villwock believes there are many lawmakers who do not understand the importance of crop insurance and want to cut government funding, which would result in higher premiums. He is urging farmers to contact their congressmen and voice support for crop insurance.

“Let them know what crop insurance meant to your operation in 2012,” Villwock said.

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