Crop Insurance Today Second Quarter 2022 - 1

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It seems pretty safe to say that on both a
Tom Zacharias, NCIS President
personal and global level, the uncertainty and
stress of the past few years has at times been
overwhelming. Global political and economic
uncertainty affects all of us and none of us
are immune.
That said, it might be worthwhile midway
As we consider the present
state of our industry, we should
be mindful of the recent
cooperative efforts of both
the private sector and our
public partners.
through this year to take stock of where we
have been, where we are, and who might hazard
a guess as to where we are going.
I would like to put this in the context of the
crop insurance industry in which we work and
use this opportunity to express my appreciation
to the women and men working in crop insurance
who have helped to build the incredible
industry we have today.
Circling back to where we have been. During
the drought year of 1988 approximately 50
million acres were insured. At the time a Blue
Ribbon Commission was established to recommend
improvements to strengthen the crop
insurance program. Fast forward to the 1993
crop season, which was characterized by the
disastrous flooding and devastating excessive
moisture conditions that prevailed in the Midwest
and as a result, the 1994 Crop Insurance
Reform Act was passed. Much like the Academy
Awards ceremony, there is not the time (or
space in my memory banks) to name the host
of industry leaders, both private industry and
those working for the Federal Crop Insurance
Corporation, as well
the political
leadership
that set crop insurance on an upward trajectory.
Much appreciation to all of those individuals
who played a critical role laying the groundwork
for the future.
On the heels of the 1994 Reform Act we
witnessed the introduction of the revenue polices
for the primary grain and oilseed commodities.
This policy innovation and coverage
expansion fundamentally changed the role of
crop insurance in agricultural policy. During
that time there were a hand full of " pioneers "
who challenged the " status quo " of conventional
thinking surrounding crop insurance. Again,
the private sector, the USDA, and the political
leadership in agriculture at the time all worked
together and elevated the stature of our industry.
Another round of appreciation is in order.
Well, we cannot rest on the laurels of the
1990s forever. Where are we now and who
should we thank for it? Ten years ago we experienced
the drought of 2012 with no calls for ad
hoc disaster. The scale of the 2012 drought was
unprecedented and the industry's loss adjuster
force did not fail to deliver. Following 2012,
along with both the 2014 and 2018 Farm Bills,
crop insurance is now considered the cornerstone
of the Farm Safety Net. We owe a debt of
gratitude to all those who labored tirelessly in
2012 and those who helped shape both the 2014
and 2018 Farm Bills. Those efforts should not
go unnoticed.
As we consider the present state of our industry,
we should be mindful of the recent cooperative
efforts of both the private sector and
our public partners. In 2019, sections of the
Midwest experienced severe crop losses due to
prevented planting conditions. The prevented
planting claim load was handled successfully
and later that summer the crop insurance delivery
system was utilized to further help farmers
recover from these crop losses sustained
in 2019. In 2020, the industry responded to
the derecho, which devastated large swaths of
Continued on page 40
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Crop Insurance Today Second Quarter 2022

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