Uncertainty in the handling of crop insurance claims willlikely be the primary impact of the overnight partial shutdown ofthe federal government.

The industry is working with a shuttered U.S. Department ofAgriculture on what to do if the shutdown extends for more than afew days, according to officials of the Independent InsuranceAgents and Brokers of America.

Charles Symington, senior vice president of external andgovernment affairs for IIABA notes that, depending upon the lengthof the shutdown, the claims adjustment notification process, thetimeline for claims payments, and business transactions with theRisk Management Agency (RMA) may be affected.

“The approved crop companies are currently working with the RMAon contingencies should the shutdown extend longer than a fewdays,” Symington says.

The Crop Insurance Program will continue in force even though adispute over food stamps has held up enactment of legislationreauthorizing farm-support programs and providing appropriationsfor them.

Symington notes that the farm bill funds the Federal CropInsurance Program (FCIP) through the end of the year. He says, “Theexpiration of the current farm bill extension will not have anyimmediate impact on the crop program.”

However, Symington says the continued inability to reach along-term compromise on a farm bill has led to uncertainty in theagriculture marketplace.

Moreover, “Today at noon the U.S. Department of Agriculture(USDA) shuts down except for essential staff, which includes onlypolitical appointees,” he says

The National Flood Insurance Program will continue in operationdespite the government shutdown, according to Dan Watson, aspokesman for the Federal Emergency Management Agency, whichadministers the program.

“In the case of a lapse in annual appropriations, FEMA, whichadministers the NFIP at the direction of Congress, will continue topay out claims, write new policies and operate the NFIP withexisting funds,” Watson says.

NFIP will continue in operation because it is funded bypremiums, not by Congress.

The Department of Health and Human Services, which administers“Obamacare,” the Patient Protection and Affordable Care Act, whichis at the heart of the conflict over funding the government, issueda statement at 9:25 a.m., stating that the exchanges “are open forbusiness.”

With most insurance handled at the state level, the impact ofthe shutdown on the rest of the insurance industry will be minimal,although 800,000 federal workers are being furloughed, while anadditional 1 million will be working but with the understandingthat it is unclear when they will be paid.

Members of Congress are being paid, but their staffs are not.Some congressional staffers worked until after 1 a.m.—some waitingfor a possible breakthrough while others worked on press statementsdrafted in anticipation of a shutdown.