C3o—Lancaster Farming, Saturday, November 8,1980
Bergland announces expansion
of Federal Crop Insurance
KANSAS CITY, Mo. -
Secretary of Agriculture Bob
Bergland announced on
Wednesday that “all-risk”
federal crop insurance is
being expanded into 250
additional counties in 31
states for the 1981-crop year,
the first step toward ex
tending the program to all
major agricultural areas
within five years.
“The Federal Crop In
surance Act of 1960, signed
into law by President Carter
on September 26 is historic
because it marks a
significant step toward
providing fanners the op
portunity to protect their
large investments in crop -
production against un
controllable risks,”
Bergland said. “It does what
our ad hoc federal disaster
programs have not done.
“This year fanners suf
fered crop losses from
drought, not unlike other
years. But the difference is
today a single total loss can
be devastating. This and the
inadequacy of existing
disaster programs were the
primary reasons why we
sought legislation to
modernize the crop in
surance program offered
through tiie Federal Crop
Insurance Corporation.
“This is a landmark for
the federal government
because it marks the
beginning of a five-year
expansion program to ex
tend government-assisted
insurance coverage to all
major agricultural counties
in the U.S. and its
territories,” Berglandsaid.
“Our job has only begun,”
he said, “the task before us
is to reach farmers with
factual information on the
substantial benefits of
federal ‘all-nsk’ crop in
surance, compared to the old
disaster programs. It is this
information program which
will enable the new in
surance program to be one of
the most important financial
management tools for
farmers m the 1980’5.”
Bergland said he had long
supported a government
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assisted crop insurance
program for farmers. He
also said that the new law
begins a phase-m of crop
insurance to become the
primary form of federal
disaster protection for
farmers.
Bergland said the new
program permits farmers
to:
—guarantee insurance
coverage on up to 75 percent
of their average yields;
—select the price level
used to determine payments
on lost production; and
—purchase hail and fire
coverage from private
coraanies and receive a
premium reduction from the
“all-risk” Federal policy.
Another important feature
of the new program,
Bergland said, is that it
encourages the writing of
federal crop insurance based
on a farmer’s actual
production and loss figures.
The program also
authorizes the federal
payment of the first 36
percent of a fanner’s
premium for coverage up to'
and including 65 percent of
the average yield.
Federal ' disaster
payments for wheat, feed
grains, upland cotton and
rice are being extended for
the 1961 crop year for those
farmers who do not have
crop insurance or those who
are willing to forego the
premium subsidy for their
crop insurance.
The new program enables
the private insurance in
dustry through licensed
agents and brokers to offer
federal crop insurance, all in
an effort to expand the
number of locations and the
source from which farmers
can obtain insurance.
The new counties selected
for crop insurance for this
coming spring were
determined primarily on the
basis of total acreage in
wheat, feed grains, upland
cotton and rice-the crops
targeted for the fust ex
pansion. They included:
MARYLAND
Baltimore; Charles;
Harford; Montgomery,
Somerset; St. Marys;
Wicomico; Worcester.
NEW JERSEY
Burlington; Cumberland;
Gloucester; Hunterdon;
Mercer; Monmouth; Salem;
Warren.
NEW YORK
Cattaraugus; Chenango;
Columbia; Erie; Jefferson;
Madison; Montgomery;
Oneida; Onondaga;
Orleans; Otsego; St.
Lawrence; Tompkins.
PENNSYLVANIA
Armstrong; Bedford;
Blair; Bradford; Buds;
Butler; Cambria; Centre;
Columbia; Huntingdon;
Indiana; Juniata;
Lawrence; Lehigh;
Lycoming; Mercer; Mifflin;
Mbntgomeryl Ntjt - -
thampton; Schuylkill;
Snyder; Somerset; Tioga;
Union; Westmoreland.
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