During the 1930s, farmers thought they were safe during the Great Depression because they could provide food for themselves. That changed quickly when the Dust Bowl drought made it difficult for farmers to produce any crops during this time. By not being able to produce these essential crops, they lacked necessary food for themselves and were unable to make money off of the crops.[1] In order to help America recover from the Great Depression, President Franklin D. Roosevelt started the New Deal, which was a plan compiled of federal programs, including several focused on farming.[2]
History
The Federal Crop Insurance Corporation was a program created to carry out the government initiative to provide insurance for farmers' produce, which means that farmers would receive compensation for crops, even if they were not sustained in that year.[3]
On September 26, 1980, the program was expanded through Public Law 96-365.[4]
Initially, participation in FCIC was voluntary. However, insurance premiums were subsidized by the U.S. government as a means of encouraging participation in the FCIC program. This changed with the Federal Crop Insurance Reform Act of 1994, which required farmers to participate in the program in order to be eligible for deficiency payments related to certain FCIC programs. During the mandatory participation Catastrophic coverage was created. "Catastrophic coverage compensated farmers for losses exceeding 50 percent of an average yield paid at 60 percent of the price established for the crop for that year."[5] Mandatory participation was repealed in 1996, but for the farmers who had accepted other benefits it was mandatory to obtain crop insurance, or they would surrender the eligibility for any benefits that were caused by disaster.[6]
Between 1980 and 2005, FCIC recorded $43.6 billion in total claims, averaging approximately $1.7 billion in losses per year. Three-quarters of FCIC claims were the result of three weather-related disasters – drought, excess moisture, and hail – with the remaining claims divided among 27 different causes, including crop-damaging frost and tornados.[7]
Biotech coverage expansion
In September 2008, the U.S. Department of Agriculture approved the expansion of the FCIC's risk management program to include agricultural producers involved in the planting and harvesting of certain biotechcorn hybrid seeds that are designed to be resistant to damage from lepidoptera pests (including moths and their larvae) and below-ground corn rootworm damage. The biotech corn hybrid seeds must also show tolerance to certain herbicides. FCIC coverage for the biotech corn hybrid seeds went into effect in 2009.[8]
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The Federal Crop Insurance Corporation FCIC is a wholly owned government corporation managed by the Risk Management Agency of the United States Department of Agriculture FCIC manages the federal crop insurance program which provides U S farmers and agricultural entities with crop insurance protection Federal Crop Insurance CorporationAgency overviewFormedFebruary 16 1938 85 years ago 1938 02 16 Parent departmentRisk Management Agency United States Department of AgricultureWebsitewww wbr rma wbr usda wbr gov wbr fcic wbr Corn crops bordering the Wabash River Contents 1 Background 2 History 2 1 Financial claims 2 2 Biotech coverage expansion 3 See also 4 References 5 Further reading 6 External linksBackground EditSee also New Deal and Dust Bowl During the 1930s farmers thought they were safe during the Great Depression because they could provide food for themselves That changed quickly when the Dust Bowl drought made it difficult for farmers to produce any crops during this time By not being able to produce these essential crops they lacked necessary food for themselves and were unable to make money off of the crops 1 In order to help America recover from the Great Depression President Franklin D Roosevelt started the New Deal which was a plan compiled of federal programs including several focused on farming 2 History EditThe Federal Crop Insurance Corporation was a program created to carry out the government initiative to provide insurance for farmers produce which means that farmers would receive compensation for crops even if they were not sustained in that year 3 On September 26 1980 the program was expanded through Public Law 96 365 4 Initially participation in FCIC was voluntary However insurance premiums were subsidized by the U S government as a means of encouraging participation in the FCIC program This changed with the Federal Crop Insurance Reform Act of 1994 which required farmers to participate in the program in order to be eligible for deficiency payments related to certain FCIC programs During the mandatory participation Catastrophic coverage was created Catastrophic coverage compensated farmers for losses exceeding 50 percent of an average yield paid at 60 percent of the price established for the crop for that year 5 Mandatory participation was repealed in 1996 but for the farmers who had accepted other benefits it was mandatory to obtain crop insurance or they would surrender the eligibility for any benefits that were caused by disaster 6 An independent office designed to supervise and monitor FCIC activities was mandated in the Federal Agriculture Improvement and Reform Act of 1996 P L 104 127 The Agriculture Risk Protection Act of 2000 ARPA made amendments providing for FCIC to offer a wider selection of insurance related risk management tools to farmers and agricultural entities 4 Financial claims Edit Between 1980 and 2005 FCIC recorded 43 6 billion in total claims averaging approximately 1 7 billion in losses per year Three quarters of FCIC claims were the result of three weather related disasters drought excess moisture and hail with the remaining claims divided among 27 different causes including crop damaging frost and tornados 7 Biotech coverage expansion Edit In September 2008 the U S Department of Agriculture approved the expansion of the FCIC s risk management program to include agricultural producers involved in the planting and harvesting of certain biotech corn hybrid seeds that are designed to be resistant to damage from lepidoptera pests including moths and their larvae and below ground corn rootworm damage The biotech corn hybrid seeds must also show tolerance to certain herbicides FCIC coverage for the biotech corn hybrid seeds went into effect in 2009 8 See also EditActual Production HistoryReferences Edit Rosenberg Jennifer Great Depression A short History Walker R What is the New Deal Archived from the original on 2014 04 18 Retrieved 2014 04 17 History of the Crop Insurance Program Archived from the original on 2018 06 06 Retrieved 2008 09 17 a b Crop Insurance 10 450 Federal Grants Wire History of the Crop Insurance Program Archived from the original on 2018 06 06 Retrieved 2008 09 17 History of the Crop Insurance Program U S Department of Agriculture Archived 2018 06 06 at the Wayback Machine Climate Change by John B Stephenson Google Books Farmers using biotech seed may pay less insurance Reuters August 19 2008Further reading Edit Crop Insurance Program Ripe for Fraud NPR November 15 2005 History of the Crop Insurance Program United States Department of Agriculture Risk Management Agency Archived from the original on 2018 06 06 Retrieved 2008 09 17 Living New Deal What Was The New Deal University of California Berkeley Department of Geography Archived from the original on 2014 04 18 Retrieved 2014 04 17 External links EditOfficial website Federal Crop Insurance Corporation in the Federal Register Retrieved from https en wikipedia org w index php title Federal Crop Insurance Corporation amp oldid 1141971021, wikipedia, wiki, book, books, library,
