The National Corn Growers Association says the next farm bill should include improvements to crop insurance and the Agriculture Risk and Price Loss Coverage programs—ARC and PLC.
NCGA First Vice-President Harold Wolle told Senate Ag lawmakers, crop insurance must be protected against cuts and made more affordable. Wolle; “Many corn growers purchase endorsement policies in higher levels of coverage. But for others, the individual cost of purchasing coverage can discourage higher levels of coverage.”
Meantime, ARC County payment rates may not exceed ten percent of a county’s benchmark revenue, limiting assistance. Wolle said; “NCGA supports increasing the maximum rate above ten percent, in order to provide increased assistance to growers who experience significant revenue losses. NCGA also recommends increasing the coverage level for ARC County above the current 86 percent of the county revenue benchmark to make the program more responsive to revenue losses.”
And Wolle argues the current PLC reference prices must be updated; “The current statutory reference price for corn is 3.70 per bushel, well below current market prices and long-term historical averages.”
NCGA also backs lifting the 115-percent cap—or 4.26 for corn—under the effective reference price escalator to allow better price protection starting next year.