The letter also references a 2024 survey that showed most of the U.S. farm economy is either already in or on the brink of a recession. (Credit: AnnaStills/Adobe Stock)
Last week, the National Association of Professional Insurance Agents (PIA) sent a letter to U.S. Congressional leaders urging them to oppose cuts to crop insurance funding in fiscal year 2026 (FY26) — emphasizing that cuts would be harmful to farmers, ranchers and other rural economies. The letter was also signed by a coalition of other crop insurance stakeholders.
The plea was addressed to members of the House and Senate appropriations and budget committees, including Susan Collins, Lindsey Graham, Patty Murray, Rosa DeLauro, Brendan Boyle, Jeff Merkley, Tom Cole and Jodey Arrington.
In the letter, PIA notes that crop insurance is a farmer’s first line of defense against natural disasters.
“It is no accident that the most recent farm bills have emphasized risk management, and in doing so, protected the interests of American taxpayers,” the letter states in part. “Farmers spend as much as $6.8 billion per year of their own money to purchase insurance from the private sector.On average, farmers also must incur losses of almost 30 percent before their insurance coverage pays an indemnity.Crop insurance allows producers to customize their policies to their individual farm and financial needs and policies are based on fundamental market principles, which means higher risk areas and higher value crops pay higher premiums for insurance. Crop insurance and its links to conservation further ensure that the program is a good investment for taxpayers.”
The letter also references a 2024 survey that showed most of the U.S. farm economy is either already in or on the brink of a recession. PIA attributes this to a combination of commodity prices in the crop sector, increased input prices and minimized benefits from Title 1 farm programs.
In 2015, Congress cut $3 billion from the crop insurance program, but push-back from PIA and other allies caused the cuts to be reversed. In FY21, PIA reports the federal budget request called for an 8% cut to the USDA and a $25 billion cut to crop insurance over the next decade.
“Despite the critical role crop insurance plays in protecting farmers from natural and economic disasters, and its value in supporting rural economies, presidents of both parties have typically tried to cut crop insurance funding using the budget and appropriations process,” Corey Weeks, PIA’s manager of government relations, said in a release. “PIA and its allies have, time and again, protected the funding of the crop insurance program and urge Congress to fully support the program in FY26.”
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