http://www.cropinsurers.com/blog The American Association of Crop Insurers Thu, 25 Oct 2007 12:28:14 +0000 http://backend.userland.com/rss092 en Average Crop Revenue (ACR):  A Rational Safety Net or a Slot Machine? • Not Just a Harmless Choice.  ACR has been called a harmless producer choice, but the choice has serious policy consequences not only for the producer but the entire farm safety net. • Opposed by Most Farm Groups.  Aside from one national ... http://www.cropinsurers.com/blog/2007/10/25/crop-insurance-vs-average-crop-revenue/ How well have crop insurance companies performed in managing fraud, waste and abuse? The Risk Management Agency (RMA) utilizes an independent third party – the Center for Agribusiness Excellence (CAE) – which is affiliated with Tarleton State University, to track the integrity of the program through data mining research.  At a ... http://www.cropinsurers.com/blog/2007/10/12/crop-insurance-what-about-fraud-waste-and-abuse/ How well have private companies performed in outreach to farmers across the nation? Statement by RMA Administrator Eldon Gould before the House Agriculture Subcommittee on General Farm Commodities and Risk Management, June 7, 2007: “The Federal crop insurance program has experienced extraordinary growth in the last quarter century. In crop year 2006, ... http://www.cropinsurers.com/blog/2007/10/11/crop-insurance-how-effective-is-private-sector-delivery/ What do private agents do to earn their commissions? It is useful to quote from a private agent, whose comparison of Crop insurance with other forms of insurance follows:   “Many local insurance agents laugh at me and ask why I sell Crop Insurance.  They would not consider writing it due to the ... http://www.cropinsurers.com/blog/2007/10/10/crop-insurance-what-do-agents-do/ Doesn’t the crop insurance industry have a sweet deal compared to other lines of insurance?   Reimbursement of delivery expenses and the potential for underwriting gain does not over compensate for the risk taken by crop insurance companies.  Crop insurance is a risky business, especially when compared to other lines of insurance ... http://www.cropinsurers.com/blog/2007/10/09/crop-insurance-how-profitable-are-the-companies/ What do companies do to earn money for delivering federal crop insurance?   Companies earn money in two ways for their involvement in delivering the federal crop insurance program.  First, companies are partially reimbursed for the cost of selling and servicing crop insurance policies. These activities include the full gambit of actions ... http://www.cropinsurers.com/blog/2007/10/08/crop-insurance-what-do-companies-do-to-earn-money/ Why don’t we have federal crop insurance program delivered by the federal government and save all that money we are paying to crop insurance companies and agents? History has also demonstrated that without the private sector delivery system, the federal government could never sell and service the program efficiently. Government delivery ... http://www.cropinsurers.com/blog/2007/10/05/crop-insurance-why-private-sector-delivery/ Home owners and other businesses buy insurance from the private sector.  Why does crop insurance need a federal subsidy?   Insurance, as a general, commercial product, is founded on the principle of uncorrelated losses, which means only one or a few policyholders suffer a loss from any specific disaster. Agriculture production and marketing ... http://www.cropinsurers.com/blog/2007/10/04/crop-insurance-why-a-federal-subsidy/ If farmers need help, why not simply have the government write them a check and eliminate the cost of subsidizing the crop insurance program? Additional direct government subsidies would not support the financial infrastructure of American agriculture as crop insurance does. Just as homeowners would not have the capital to afford ... http://www.cropinsurers.com/blog/2007/10/03/crop-insurance-why-not-a-direct-payment/ Farmers must have crop insurance for the same reason that any homeowner must have home insurance. A homeowner cannot afford the risk of being homeless because of a loss, and no one can get a mortgage without insurance. Without the availability of insurance, lenders would not make capital available to ... http://www.cropinsurers.com/blog/2007/10/02/crop-insurance-why-do-farmers-need-it/