Importance of Crop Insurance for Farmers

By Scout Nelson

During a Senate Agriculture Committee hearing on risk management, credit, and rural business, U.S. Senator Joni Ernst (R-Iowa) emphasized the importance of crop insurance for farmers, particularly in disaster-prone areas like Iowa. She discussed how federal crop insurance provides a critical safety net, offering farmers stability and confidence, especially when facing unpredictable natural disasters.

“Crop insurance is the most effective and reliable risk management tool available to farmers that must remain affordable and accessible,” said Senator Ernst. “Over the years, Congress has approved multiple rounds of ad hoc disaster payments to help farmers recover from severe weather events. While these payments offer relief in times of crisis, they are slow, they are unpredictable, and subject to political gridlock – leaving farmers uncertain about when or if help will actually arrive. Iowa farmers – who have faced multiple natural disasters in recent years – have made it clear that they need certainty and protection in real time, not months or years after the damage is done.”

“Crop insurance is the number one risk management tool in the belt for ag lenders. It is a tool that also puts the power back in the producer’s hands,” said Hopkins. “That level of certainty helps bankers make that decision as we look at renewing operating lines. Reference prices combined with crop insurance are the two most important tools that bankers have.”

Ernst and Hopkins both stressed that crop insurance remains a crucial tool for safeguarding Iowa farmers and the broader agricultural industry.

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