The Crop Insurance for Future Farmers Act would support new farmers and veterans alike by aligning the crop insurance definition of a “beginning farmer” to match other similar programs. (Credit: sima/Shutterstock)
A bill has been introduced in the U.S. Congress that aims to make crop insurance more affordable for budding domestic farmers and military veterans.
The Crop Insurance for Future Farmers Act was co-authored by Representative Randy Feenstra, who represents Iowa’s 4th district alongside Rep. Angie Craig of Minnesota, Senate Majority Leader John Thune of North Dakota and Sen. Amy Klobuchar of Minnesota.
The act notes that the number of farms in the U.S. peaked in 1935 at 6.8 million, but that number dropped to around 2 million in 2022.
“Young and Beginning Farmers have always played a critical role in American agriculture,” the act states. “Not only do these farms provide economic security for their families, but they also bring economic activity to their rural community — helping keep their towns alive.”
In 2017, young producers sold an estimated $30 billion in crops and $36 billion in livestock, making them a major contributor to the agriculture sector — especially with 34% of Ag producers currently over 65 years old and nearing retirement. This, the bill claims, means that around 40% of farmland in the U.S. is set to change hands over the next two decades.
The act also addresses assistance for farmers in the military, noting that in 2017 there were more than 370,000 producers who served or were currently serving in the military — comprising about 11% of producers.
The Crop Insurance for Future Farmers Act would support new farmers and veterans alike by aligning the crop insurance definition of a “beginning farmer” to match other similar programs. Currently, “beginning farmers” are those with 5 or fewer crop years, but the act would bump that definition to someone with 10 or fewer crop years. This would extend crop and insurance protections for farmers and would apply to all federal crop insurance programs, including livestock.
In a column, Feenstra notes that the first decade in business is when agricultural producers are the most vulnerable.
“With rising input costs, softening commodity prices, and uncertainty threatening the farm economy, the need for a strong and comprehensive farm safety net is undeniable and urgent,” Feenstra stated. “Crop insurance serves as the best tool in a farmer’s toolkit to manage the risk they face on the farm, while reducing taxpayer risk exposure. This legislation works to improve access to and affordability of this critical risk management tool.”
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.