June 25, 1999

Rep. Saxby Chambliss (R-GA) has introduced a bill to reform the federal crop insurance program. The bill requires rate and coverage adjustments to make crop insurance more affordable, provides incentives for certain production practices, expands coverage and imposes stiff penalties for fraud and abuse.

"Farmers need a forward-looking, more permanent solution to the weather and pricing crises they can't control," Chambliss said. "This bi-partisan bill moves us one step closer to providing a workable risk management system that addresses crops grown in all regions of the country as the need for crop insurance transcends all geographic and ideological lines."

The bill requires rate and coverage adjustments to make crop insurance more affordable and increase participation. It provides incentives for irrigation, genetically-modified seed and conservation tillage; it expands catastrophic coverage and strengthens the program that covers losses of crops for which insurance is not available; it provides incentives for farmers to buy crop insurance; it requires strict oversight of the Risk Management Agency by the Federal Crop Insurance Corporation and requires FCIC to consult with the Farm Service Agency on the feasibility of policies offered in each state. In addition to penalties for fraud and abuse, it strengthens record keeping and reporting of crop production by participants and non-participants in the crop insurance program.