Sen. Brown Announces Rebates to Ohio Farmers Thanks to Crop Insurance Reforms

Brown Effort to Reform Crop Insurance Yields Refunds to Farmers and Reductions in National Deficit

WASHINGTON, D.C. – U.S. Sen. Sherrod Brown (D-OH) announced today that Ohio farmers who participate in federal crop insurance and have a history of good performance could be eligible for up to $25,000 in rebates due to crop insurance reforms. This proposed refund is made possible by the savings realized from recent negotiations between the U.S. Department of Agriculture (USDA) and the private insurance industry. Brown championed crop insurance reform during the 2008 Farm Bill debate and led a bipartisan effort to cut more than $2 billion in subsidies to crop insurance companies and redirect the funds for critical agriculture and rural development initiatives and to pay down the federal deficit. While the amendment was ultimately unsuccessful, it laid the groundwork for a USDA-led negotiation with 16 crop insurance companies which generated $6 billion in savings over the next 10 years. USDA has proposed using $4 billion of savings for deficit reduction and $2 billion of savings to support farmers and farm conservation through programs such as this rebate.

“Reforms to federal crop insurance programs will benefit Ohio farmers and help reduce our federal deficit. Instead of overpaying insurance companies, Ohio farmers could now see federal rebates through crop insurance reform,” Brown said. “This program will refund a portion of farmers’ premiums and reward farmers for best management practices.  I was proud to champion changes to farm programs during the 2008 Farm Bill that strengthened the farm safety net while reducing the burden to taxpayers. I will continue to fight for Ohio’s small towns and agricultural communities to fund critical infrastructure such as rural broadband and support Ohio’s farmers.”

Under the proposed program, payment amounts would vary by producer and would be based on each qualified producer’s history in the program. USDA’s Risk Management Agency (RMA) estimates that the average refund amount per producer this year will be about $1,000 although Ohio farmers could see more. The program has a proposed maximum limit at $25,000, with a minimum payment of $25. The first year of the proposed program will use data from 2009 and prior crop years because not all 2010 data is finalized.

RMA expects that this proposed Good Performance Refund program will provide producers in rural America with about $75 million this year in crop insurance refunds. It is estimated that the proposed program would benefit farmers and ranchers in over two-thirds of counties nationwide. USDA’s Risk Management Agency proposed rule will be collecting public comments on the rule for a 15-day period that ends January 21, 2011 and subsequently finalizing the rule. The proposed program is intended to be available to farmers prior to the spring planting season.

Brown has held more 160 roundtables throughout the state, including a weeklong series of roundtables focused exclusively on agriculture. In July of 2008, Brown received the President’s Award from the National Corn Growers Association (NCGA) for his work on the 2008 farm bill. The award is given each year to a single member of Congress who has actively worked and raised awareness on grower issues. Brown is a past recipient of the “Friend of Farm Bureau” Award from the Ohio Farm Bureau and the “Golden Triangle” Award from the Ohio Farmers Union. These awards are given to members of Congress who have supported issues important to Ohio agriculture.

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