A vibrant farm industry is currently helping the crop insurance industry cope with the Agriculture Department’s decision to substantively cut back its subsidy program, “but every year is a new year,” the head of the trade group representing the industry said.

“Obviously, with the new standard operating agreement, there is a reduction in profits,” said Tom Zacharias, president of the National Crop Insurance Services, Overland Park, Kan.

These cuts include reimbursement reduction for delivery expense, administrative costs and operating costs, as well as a reduction in expected underwriting gain for companies.

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