Dear Chairmen Whitehouse and Arrington and Ranking Members Graham and Boyle:

As the Budget Committee works to lay out fiscal policy goals for Fiscal Year 2024, we

respectfully urge you to protect crop insurance from harmful cuts. The last several years

have brought an onslaught of uncertainty for America’s farmers and ranchers - from weather

extremes to the disruptions of international markets to COVID-19 and all of its unique

challenges. During this tumultuous time, one of the few certainties that farmers could rely on

was the protection provided by the Federal crop insurance policy purchased with their hardearned dollars.

Even in good years, farmers need access to a strong and secure Federal crop insurance

program, a program that farmers have described time and again as a critical linchpin of the farm safety net. The strength and predictability of the program is only more critical given uncertainty that characterizes the production agriculture sector. USDA and Congress have taken extraordinary ad hoc measures over the past few years to ensure the financial security of rural America. It would only serve to undercut these efforts to propose harmful changes to a crop insurance program that provides predictable, within-budget assistance to farmers in a way that helps lenders continue to support America’s farmers and ranchers. It is the certainty of the crop insurance program that provides critical reassurance to lenders.

It is no accident that the most recent farm bills have emphasized risk management, and in doing so, protected the interests of American taxpayers. Farmers spend as much as $4 billion per year of their own money to purchase insurance from the private sector. On average, farmers also must incur losses of almost 30 percent before their insurance coverage pays an indemnity. Crop insurance allows producers to customize their policies to their individual farm and financial needs and policies are based on fundamental market principles, which means higher risk areas and higher value crops pay higher premiums for insurance. Crop insurance and its links to conservation further ensure that the program is a good investment for taxpayers, while simultaneously acting as a first line of defense against extreme weathers events and climate change.

Given the challenges faced by rural America and the critical nature of crop insurance, cuts to the program should be avoided. Farmers, agribusinesses, lenders and lawmakers agree that crop insurance is a linchpin of the farm safety net and is crucial to the economic and food and fiber security of urban and rural America. We urge you to continue to support this critical component of the safety net for America’s farmers and ranchers and oppose cuts to crop insurance during FY24 budget and appropriations process.

Sincerely,

Agricultural Retailers Association

American Agri-Women

American Association of Crop Insurers

American Bankers Association

American Farm Bureau Federation

American Farmland Trust

American Malting Barley Association

American Property and Casualty Insurance Association (APCIA)

American Seed Trade Association

American Sesame Growers Association

American Society of Farm Managers and Rural Appraisers

American Soybean Association

American Sugar Alliance

American Sugar Cane League

American Sugarbeet Growers Association

Association of Equipment Manufacturers

Cotton Warehouse Association of America

Crop Insurance and Reinsurance Bureau

Crop Insurance Professionals Association

Ducks Unlimited

Environmental Defense Fund

Farm Credit Council

Independent Community Bankers of America

Independent Insurance Agents and Brokers of America

Midwest Council on Agriculture

National Alfalfa and Forage Alliance

National Association of Mutual Insurance Companies

National Association of Professional Insurance Agents

National Association of State Departments of Agriculture

National Association of Wheat Growers

National Barley Growers Association

National Barley Improvement Committee

National Corn Growers Association

National Cotton Council

National Council of Farmer Cooperatives

National Crop Insurance Services

National Farmers Union

National Grain and Feed Association

National Milk Producers Federation

National Oilseed Processors Association

National Peach Council

National Potato Council

National Sorghum Producers

National Sunflower Association

North American Equipment Dealers Association

Organic Trade Association

Pacific Northwest Canola Association

Panhandle Peanut Growers Association

Pheasants Forever

Quail Forever

Reinsurance Association of America

Rural & Agriculture Council of America

Southwest Council of Agribusiness

U.S. Apple Association

U.S. Canola Association

U.S. Cattlemen’s Association

U.S. Durum Growers Association

U.S. Peanut Federation

USA Dry Pea & Lentil Council

USA Rice

Western Peanut Growers Association

Cc: Sen. Debbie Stabenow, Chairwoman, Committee on Agriculture, Nutrition and Forestry

Sen. John Boozman, Ranking Member, Committee on Agriculture, Nutrition and Forestry

Rep. GT Thompson, Chairman, Committee on Agriculture

Rep. David Scott, Ranking Member, Committee on Agriculture