Crop Insurance Today February 2018 - 26

set in the last Standard Reinsurance Agreement
(SRA) negotiation. Lastly, OMB's improper payments rate for crop insurance and the RMA is
one of the lowest across government agencies.
"Did you do it for love, did you do it for money? We'll find out in the long run..."
I have had the privilege to work in this industry quite a while now and would say that more
than the majority of folks involved in this business truly enjoy the work they do and are committed to it. They enjoy working with farmers
and they enjoy working in agriculture.
That said, crop insurance is a business and
economics matter and so do incentives. Economic incentives are at the heart of the public private
partnership. In order to continue our success, it
is vital that government provide appropriate incentives and clear economic signals to both the
insured farmer and its industry delivery partners.
These signals and incentives include the regulatory environment as well. It is essential that both
the public and private sectors work together to
ensure that the correct incentives are in place so
that crop insurance is delivered efficiently and effectively. Examples of this include the review of
policies and procedures, the establishment of ac-

In order to continue our
success, it is vital that
government provide appropriate incentives and clear
economic signals to both
the insured farmer and its
industry delivery partners.
curate T-yields, and the development of accurate
premium rates by RMA. Another example would
be proper calibration of the gain and loss provisions in the SRA to ensure there is adequate risk
sharing by the participating companies.
Although it is not clear how the next farm bill
will unfold or when the next SRA will be negotiated, it will be important to establish the appropriate economic signals that continue to improve
upon the current U.S. crop insurance system.
This can only be done by clear and open communication between both RMA and the Industry.
In closing, I believe it is fair to say that our
industry is in this business for the "long run."
Several major crop insurance carriers who are

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26

FEBRUARY2018

active today can trace their beginning to the late
1800's or early 1900's. From an NCIS perspective,
we can trace the development of industry service
to our predecessors of NCIA and CHIAA, both of
which began in the early 1900's. The investment
by our industry to provide the necessary infrastructure, along with the partnership with the
Federal government, is a testament to the long
run commitment to serving the risk management needs of the American farmer.

In This Issue

As we begin 2018, we wanted to look back
and review some of the activities of our association staff in 2017. The 45 individuals at NCIS
work hard to help our members provide the best
crop insurance product to America's farmers and
ranchers. We have a wealth of knowledge on our
team and we strive to provide our best when we
analyze policy or procedural changes, provide
in-depth analysis on financial topics relevant to
the industry, provide training for company underwriters, claims supervisors, trainers, and adjusters, or when we organize, lead, or participate
in a myriad of other presentations, meetings, and
activities every year. We appreciate the opportunity to serve our members, and the entire crop
insurance industry, and we hope that "Excellence and Professionalism Remain Priorities for
NCIS" showcases our dedication to NCIS and
the industry.
One of our staff, in particular, had a good
2017 as he had two peer-reviewed articles published in economic journals. Dr. Harun Bulut's
articles are highlighted and summarized in the
article on page 20. Congratulations to Harun on
this wonderful accomplishment.
We also introduce you to Vern and Shelley
Williams, a couple who has been farming in
Washington for over 40 years. They were gracious
enough to visit with us about why crop insurance
is important to them. This issue also contains a
valuable tool for agents and companies in the
Insurable Crops, Location, and Plans chart that
shows available insurance products for each crop
and state.
For those of you attending our 2018 Annual
Convention in Arizona, welcome! We are glad to
have you with us as we celebrate the successes of
our industry and look forward to another great
year of providing the premier risk management
tool for America's farmers. We hope you enjoy all
of the features of the magazine and we wish you
a successful 2018.

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Table of Contents for the Digital Edition of Crop Insurance Today February 2018