"Improving the crop insurance program and insuring that quality coverage is more affordable and better suited to the needs of farmers provides much needed stability in rural America," said Grassley, who was one of the co-sponsors. "While we have more to accomplish to guarantee the stability of the family farmer, this is an important first step."
The Roberts-Kerrey-Grassley amendment provides more affordable crop insurance, improves the public-private partnership, expands opportunities for livestock coverage, and equalizes subsidies for revenue-based products.
What does this mean for Iowa? Eighty-one percent of all corn and soybeans are insured in the state. Eighty-five percent of insured acres are covered by "buy up" policies and 60 percent of insured acres in Iowa are covered by a revenue insurance product. This is the highest percentage in the United States.
By making crop insurance (especially revenue products) more affordable, Iowa farmers will use the improved subsidy formula to benefit from the highest subsidy at the highest level of coverage. The high levels of coverage will help to support family farmers in poor years and alleviate some of the need for what is becoming an annual economic relief payment.
"This program will stabilize the potential losses farmers experience due to poor exports," Grassley said. "This legislation will provide the security necessary to help farmers through lean years so that they will be around to experience better prices and increased revenue."