Crop Insurance Today August 2016 - 24

United States Department of Agriculture n USDA The United States Department of Agriculture (USDA) consists of almost 100,000 employees throughout the nation representing 35 agencies and offices. The USDA provides "leadership on food, agriculture, natural resources, rural development, nutrition and related issues based on public policy, the best available science and effective management." Through programs and services such as disaster assistance, conservation, nutrition education, agricultural statistics and food security, the USDA promotes conservation of natural resources and agricultural production to continuously improve our nation. system with agents across the country serving on the front line. Specifically, CIPA: * Engages Congress and the Administration on issues important to our customers and agents. * Exchanges information among agents and with producer groups and companies. * Educates members on issues of importance to the Federal Crop Insurance Program. "Crop insurance is a cornerstone of U.S. farm policy," CIPA Chairman, William Cole, said. "Without crop insurance, there would be no multi-peril insurance for farmers, credit would freeze up, and U.S. taxpayers would be on the hook for both a credit crisis and any natural disasters that hit. It effectively leverages producer-paid premium and private industry innovation to deliver more than $100 billion in coverage each year." CIPA is represented by Combest Sell & Associates, LLC, led by the former Chairman of both the House Select Committee on Intelligence and the House Committee on Agriculture, Larry Combest, and Tom Sell, an attorney and former Deputy Chief of Staff to the House Committee on Agriculture. Along with Combest and Sell, Jeff Harrison, an attorney, former counsel to the House Committee on Agriculture and a senior U.S. Senate staffer and Trevor White provide experienced and effective representation in Washington. Jill Whitley provides membership support to all CIPA members. Along with CIPA, there are other professional insurance agent associations who have specific sections dedicated to crop insurance 24 AUGUST2016 agents including the National Association of Professional Insurance Agents and the Independent Insurance Agents and Brokers of America. PUBLICSECTOR Although the private-sector is the older component of the program, crop insurance wouldn't be as structured as it is today if it wasn't for the addition of the public-sector. The public-sector is the government side of the industry, which began when the Federal Crop Insurance Act of 1938 created the Federal Crop Insurance Program. And later it was the Federal Crop Insurance Act of 1980 when the public-private partnership between the U.S. government and private insurance companies began. These two acts helped pave the way for protecting farms of all sizes from unpredictable disasters. The public-sector of crop insurance, which is overseen by the United States Department of Agriculture (USDA), helps set program standards, approves new products, sets premium rates, and discounts farmer premiums through the Federal Crop Insurance Corporation. The USDA agency charged with implementation of the federal crop insurance program is the Risk Management Agency. The Federal government further makes crop insurance affordable for farmers by offsetting delivery costs that would otherwise be built into the premium. And it also reinsures the crop insurance companies (known as approved insurance providers, or AIPs) through the Standard Reinsurance Agreement (SRA). Federal Crop Insurance Corporation n FCIC When the government established the Federal crop insurance program, it wanted to ensure the program was carried out efficiently and effectively. Thus the Federal Crop Insurance Corporation (FCIC) was created under the Federal Crop Insurance Act. This organization promotes "economic stability of agriculture through a sound system of crop insurance and provides the means for the research and experience helpful in devising and establishing such insurance." FCIC works to encourage the sales of crop insurance with the help of licensed private agents. The corporation also works hard to create new crop insurance programs that will help cover countless farms across the United States. The FCIC Board of Directors was established to help manage and oversee the corporation. This committee is comprised of nine qualified individuals who help with specific sectors of the Federal crop insurance program. Serving on the Board of Directors is Under Secretary for Farm and Foreign Agricultural Services, Michael Scuse; USDA's Chief Economist, Robert Johansson; and RMA Administrator, Brandon Willis, who also serves as the Manager on the FCIC Board. This non-voting position allows Willis to ensure that the FCIC and RMA run smoothly, working as a liaison between both. The last six positions on the Board of Directors are appointees who offer up experience and knowledge from their full-time position

Table of Contents for the Digital Edition of Crop Insurance Today August 2016