Q: When is the deadline for farmers to sign-up for crop insurance for
2001?
A: As in years past, the USDA has set a March 15 deadline for farmers to insure their corn and soybean acres for the upcoming growing season and remain eligible for many USDA programs and loans. What's more, farmers should take note that congressional changes made last year have expanded coverage options - including for the first time livestock coverage - and made multi-peril and revenue-based coverage more affordable. That's good news, especially considering farmers need to factor in higher energy and fertilizer costs this year when they make their risk management decisions. Congress changed the rate structure last year to make the program more responsive to the marketplace and easier for growers to purchase higher levels of coverage. As Iowa farmers map out their upcoming crop year, I encourage them to take a look at this program before the March 15 deadline and consider how it may fit into their overall risk management and marketing strategy. The crop insurance program is an effective public-private partnership that gives farmers an affordable tool to reduce risk. Many farm families like having the peace of mind that crop insurance provides. It brings greater certainty and security to be able to guarantee that at least one's input and production costs can be covered. Furthermore, revenue coverage in many cases widens the farmer's comfort zone to pursue alternative marketing strategies like forward contracting, options and futures contracts.
Q: What does your crystal ball show for the 2001 crop year and Washington's response?
A: A recent report to Congress would indicate that farmers are not yet out of the woods. The last three growing seasons have produced a glut of grain and met waning worldwide demand. As a result, commodity prices slumped. And they are not expected to jump significantly this year, although agriculture exports are expected to rebound as countries in Asia, Latin America, North Africa and the Middle East experience healthier economies. As chairman of the Senate Finance Committee, which handles international trade policy, I will be leading the charge in Congress to enhance export opportunities for American agriculture. An Iowa farmer on average receives a third of his income from exports. The good news is that farm exports are expected to rise steadily over the next 10 years. And I will work to make sure American agriculture has a prominent seat at the table during world trade negotiations. Moreover, farm families stand to gain with the substantial tax relief package that is making its through Congress. As a senior member of the Budget Committee, I also will be closely involved in writing the fiscal 2002 budget blueprint. From here, I will work hard to ensure American agriculture gets a fair shake and an adequate safety net to help get farmers through these lean years.