Senate Should Act Quickly on Insurance Extension
March 24, 1999

The Senate is expected to act quickly on a House-passed bill to extend the crop insurance deadline for certain farmers.  Farmers who applied for American Agrisurance's CRCPlus policies are eligible to buy another policy within 14 days but not later than April 12 under the bill.

AmAg's CRCPlus policy was intended to supplement the federal crop revenue coverage policy.  The company offered the policy, then reduced coverage in some instances.  Because the sales closing date had passed for spring-planted crops, farmers who chose to cancel their CRCPlus and CRC policies were precluded from buying a replacement policy.

"Through no fault of their own, farmers have been put in the unenviable position of having to choose between crop insurance that may no longer be economical for them, insurance with too little coverage, or no insurance at all," said House Ag Committee Chairman Larry Combest (R-TX).  "Putting farmers in this kind of predicament is unacceptable, and this bill fixes the problem."

According to the language in the bill, it applies to producers eligible for insurance and who applied for the CRCPlus policies for the 1999 crop year "for a spring-planted agricultural commodity."

 A producer may "obtain from any approved insurance provided a level of coverage for the agricultural commodity for which the producer applied for the CRCPlus endorsement that is equivalent to or less than the level of federally reinsured coverage that the producer applied for from the insurance provider that offered the CRCPlus endorsement," the bill states.

Another ag-related issue also is before Congress.  The Senate has approved a $2.1 billion supplemental spending bill, and the House is expected to approve its version today.  President Clinton has threatened to veto either bill because budget offsets would reduce domestic programs the administration wants protected.  The Senate bill includes about $600 million in agricultural assistance.