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Federal Crop Insurance: A Primer [February 18, 2021]
From the Introduction: "The federal crop insurance program (FCIP) provides insurance coverage for the production of most U.S. agricultural commodities against financial losses caused by adverse growing and market conditions. This insurance coverage helps stabilize farm business incomes, which can help farmers to repay debt, reduce farm bankruptcies, and thus avoid disruptions to food, livestock feed, and other markets for agriculture commodities, including export markets. The FCIP supplies insurance coverage that is not otherwise available from the private sector and is a central component of the federal farm safety net, a collection of programs that provide risk protection and financial support to farmers in times of low farm prices and natural disasters. Farmers can choose from a variety of insurance coverage options to customize the coverage to the specific needs of their farm businesses. The federal government subsidizes the policy premiums to encourage participation. [...] This report provides an overview of the FCIP and of how farmers use federal crop insurance policies to manage financial risk. It discusses legal authorities and annual appropriations for the program, key milestones in the program's history, and how the FCIP relates to the broader U.S. agricultural policy framework. The report also reviews the rationale for providing crop insurance by the public sector and outlines several issues Congress may consider related to program expansion, reform, and oversight."
Library of Congress. Congressional Research Service
Rosch, Stephanie
2021-02-18
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U.S. Farm Income Outlook: December 2020 Forecast [February 9, 2021]
From the Introduction: "This report discusses the results of the third of three official USDA national farm income outlook forecasts released for 2020 (see box 'ERS's Annual Farm Income Forecasts' in the 'Appendix') by USDA's Economic Research Service (ERS). This release of December 2, 2020, provided the most comprehensive view of annual net farm income for the year because harvests were close to completion for most crops, and a substantial share of the harvested crops already had been sold. However, USDA will continue to fine-tune farm income estimates for 2020 as more and better data become available through 2021. This report's 'Appendix' has a discussion of how the December forecast aligns with prior forecasts from earlier in 2020."
Library of Congress. Congressional Research Service
Schnepf, Randall Dean, 1954-; Rosch, Stephanie
2021-02-09
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U.S. Agricultural Aid in Response to COVID-19 [Updated March 2, 2021]
From the Introduction: "Coronavirus Disease 2019 (COVID-19) was first confirmed in the United States in mid-January 2020. In addition to the catastrophic health crisis it created, the COVID-19 pandemic has contributed to substantial economic upheaval across the U.S. economy, including the agricultural sector. This In Focus summarizes the major COVID-19-related agricultural programs, the types of support they provide, and their implementation period, funding levels, outlays to date, and underlying authorities."
Library of Congress. Congressional Research Service
Rosch, Stephanie; Schnepf, Randall Dean, 1954-
2021-03-02
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U.S. Agricultural Aid in Response to COVID-19 [February 19, 2021]
From the Introduction: "This In Focus summarizes the major COVID-19 [coronavirus disease 2019]-related agricultural programs, the types of support they provide (Table 2), and their implementation period, funding levels, outlays to date, and underlying authorities (Table 3). Relevant CRS [Congressional Research Service] reports on COVID-19-related programs for agriculture and other areas, such as for nutrition assistance programs, are identified in Table 1."
Library of Congress. Congressional Research Service
Schnepf, Randall Dean, 1954-; Rosch, Stephanie
2021-02-19
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U.S. Farm Income Outlook: February 2021 Forecast [February 24, 2021]
From the Document: "As the 117th Congress considers spending measures, such as through reconcilation, [sic] the health of the U.S. farm economy may be a part of the debate. In particular, Congress may consider the increased role in recent years of large government payments in supporting farm income. Is such intervention sustainable? In addition, is it neutral to the farm decisionmaking process, or does it confer any regional or commodity-specific advantages that might conflict with market forces?"
Library of Congress. Congressional Research Service
Schnepf, Randall Dean, 1954-; Rosch, Stephanie
2021-02-24
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Russia's Invasion of Ukraine: Implications for Agricultural Trade and Production [March 17, 2022]
From the Document: "On February 24, 2022, Russia initiated a widespread invasion of Ukrainian territory, including Russian attacks from forces deployed in Belarus. In response to the invasion, the United States [hyperlink] and other countries imposed financial and trade sanctions on Russia and Belarus. The combined impacts of the invasion and sanctions have disrupted commercial air, rail, and ocean shipping [hyperlink] from Ukraine and Russia and have impacted international trade patterns, including for certain agricultural commodities [hyperlink] and fertilizers [hyperlink]. For more on U.S. and allied responses to Russia's invasion, see CRS Insight IN11869, 'Russia's Invasion of Ukraine: Overview of U.S. and International Sanctions and Other Responses' and CRS Insight IN11871, 'Russia's Invasion of Ukraine: New Financial and Trade Sanctions.'"
Library of Congress. Congressional Research Service
Rosch, Stephanie
2022-03-17
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Racial and Ethnic Equity in U.S. Agriculture: Selected Current Issues [April 11, 2022]
From the Introduction: "Issues concerning racial and ethnic equity in the United States have increased in profile among the general public, policymakers, and Members of Congress. The media has reported on racial inequity across various sectors and industries, including agriculture. Similarly, Congress has drawn attention to the challenges facing Black farmers and ranchers and other producers of color through hearings, legislation, and oversight of federal agencies. [...] This report reviews actions taken by the 116th and 117th Congresses to enhance equity for producers of color in the United States in the areas of agricultural credit; USDA civil rights complaints; farmland ownership; and USDA research, education, and extension."
Library of Congress. Congressional Research Service
Benson, Lisa S.; Croft, Genevieve K.; Monke, Jim . . .
2022-04-11
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Russia's Invasion of Ukraine: Implications for Global Food Prices and Food Security [May 2, 2022]
From the Document: "Russia's invasion of Ukraine has impacts on global food security [hyperlink]. Since February 24, 2022, a humanitarian and economic crisis has unfolded in Ukraine, limiting Ukrainian exports of food and agricultural commodities, and affecting millions of people in Ukraine and the region, including more than 12 million recently displaced [hyperlink] (roughly a quarter of the population of Ukraine). In addition, in response to the invasion, the United States and other countries have imposed financial and trade sanctions on Russia, further affecting international trade patterns. Because Ukraine and Russia are among the world's leading exporters of certain food staples used in many countries, the effects of such disruptions on global food security are becoming apparent."
Library of Congress. Congressional Research Service
Margesson, Rhoda; Nair, Amber D.; Rosch, Stephanie . . .
2022-05-02
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U.S. Agricultural Aid in Response to COVID-19 [Updated May 20, 2021]
From the Introduction: "Coronavirus Disease 2019 (COVID-19) was first confirmed in the United States in mid-January 2020. In addition to the catastrophic health crisis it created, the COVID-19 pandemic has contributed to substantial economic upheaval across the U.S. economy, including the agricultural sector. This In Focus summarizes the major COVID-19-related agricultural programs, the types of support they provide, and their implementation period, funding levels, outlays to date, and underlying authorities."
Library of Congress. Congressional Research Service
Schnepf, Randall Dean, 1954-; Rosch, Stephanie
2021-05-20
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U.S. Agricultural Aid in Response to COVID-19 [Updated April 1, 2021]
From the Introduction: "Coronavirus Disease 2019 (COVID-19) was first confirmed in the United States in mid-January 2020. In addition to the catastrophic health crisis it created, the COVID-19 pandemic has contributed to substantial economic upheaval across the U.S. economy, including the agricultural sector. This In Focus summarizes the major COVID-19-related agricultural programs, the types of support they provide, and their implementation period, funding levels, outlays to date, and underlying authorities."
Library of Congress. Congressional Research Service
Rosch, Stephanie; Schnepf, Randall Dean, 1954-
2021-04-01
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Federal Crop Insurance Program (FCIP): Replanting, Delayed Planting, and Prevented Planting [August 12, 2021]
From the Summary: "The federal crop insurance program (FCIP) offers farmers the opportunity to purchase insurance coverage against financial losses caused by certain adverse growing and market conditions. FCIP policies provide indemnities for losses on planted acres and payments for replanting acres after losses. In addition, some FCIP policies provide payments for certain situations where planting is not possible. These payments can help farmers manage cash flow and financial risk for their operations. The FCIP imposes certain production and reporting deadlines that producers must meet in order to maintain eligibility for indemnity payments on their FCIP coverage. These deadlines vary by crop and location. The FCIP has specific rules around replanting, delayed planting, and prevented planting to limit opportunities for waste, fraud, and abuse in the program. [...] This report reviews the connections between crop planting cycles and FCIP policy deadlines, and provides an overview of FCIP rules for replanting, delayed planting, and prevented planting. As part of its ongoing oversight of the FCIP, Congress may wish to consider whether the rules governing delayed planning, replanting, and prevented planting provide consistent risk protection across crops and years; strike the right balance between the cost of replanting and prevented planting payments while providing adequate coverage for producers; provide incentives for farmers to engage in agricultural conservation practices; and whether there are opportunities to reduce waste, fraud, and abuse."
Library of Congress. Congressional Research Service
Rosch, Stephanie
2021-08-12
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Federal Crop Insurance Program Support for Natural Disasters [September 13, 2021]
From the Document: "Natural disasters--events such as severe droughts, floods, and storms--can cause crop and animal production losses as well as other physical and financial losses for farm operations. The Federal Crop Insurance Program (FCIP) offers farmers the opportunity to purchase insurance against financial losses caused by certain adverse growing and market conditions. By insuring against adverse growing conditions, FCIP policies may also indemnify farmers for financial losses caused by certain natural disaster events. The extent to which the FCIP indemnifies farmers for losses related to natural disasters depends on the type of disaster, the type of FCIP policy purchased, and the level of coverage selected by the producer."
Library of Congress. Congressional Research Service
Rosch, Stephanie
2021-09-13
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U.S. Food Price Inflation and Agriculture Policy [June 3, 2022]
From the Document: "U.S. food price inflation has accelerated in 2022 ('Figure 1'). The U.S. Consumer Price Index (CPI) for food rose by 9.4% [hyperlink] between April 2021 and April 2022, the largest 12-month increase between consecutive Aprils since 1981. Current food price inflation can be due to general inflationary pressure on the economy as well as food-specific factors, which may vary by the type of food. Rising food prices present challenges for many U.S. consumers, particularly low-income consumers."
Library of Congress. Congressional Research Service
Rosch, Stephanie; Monke, Jim
2022-06-03
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Federal Crop Insurance Program Support for Natural Disasters [Updated July 21, 2022]
From the Document: "Natural disasters--events such as severe droughts, floods, and storms--can cause crop and animal production losses as well as other physical and financial losses for farm operations. The Federal Crop Insurance Program (FCIP) offers farmers the opportunity to purchase insurance against financial losses caused by certain adverse growing and market conditions. By insuring against adverse growing conditions, FCIP policies may also indemnify farmers for financial losses caused by certain natural disaster events. The extent to which the FCIP indemnifies farmers for losses related to natural disasters depends on the type of disaster, the type of FCIP policy purchased, and the level of coverage selected by the producer."
Library of Congress. Congressional Research Service
Rosch, Stephanie
2022-07-21
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Climate Change and Agricultural Risk Management into the 21st Century
From the Document: "This study uses statistical, geophysical, and economic models to explore the mechanisms by which climate change could affect future costs of farm safety net programs to the Federal Government. This approach first simulates the potential impact of climate change on yields of major commodities, then quantifies the implications of yield change on planting decisions and prices, which in turn affects the cost of risk management programs. This allows for analysis of three different pathways by which cost increases could occur: (1) the direct impact of climate on yield risk, (2) the indirect effect of yield risk on price risk, and (3) the impact of changed average yield, production, and price on the total value insured (liabilities). While farm safety net policies change over time, this study uses the current version of the FCIP's [Federal Crop Insurance Program] Revenue Protection program as a heuristic: a program that reduces both yield and price risk as past programs have, and as future policies may."
United States. Department of Agriculture
Crane-Droesch, Andrew; Marshall, Elizabeth; Rosch, Stephanie . . .
2019-07
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Federal Crop Insurance Program (FCIP): Limits on Administrative and Operating Subsidies [August 10, 2022]
From the Document: "The federal crop insurance program (FCIP) offers farmers the opportunity to purchase insurance coverage against financial losses caused by a wide variety of perils, including certain adverse growing and market conditions. The federal government regulates the policies offered and subsidizes the premiums that farmers pay in order to encourage farmer participation in the program. The FCIP plays a prominent role in helping farmers manage financial risk, with more than 444 million acres and $150 billion in crop and livestock value insured in crop year 2021. Annual federal program outlays averaged $9.1 billion for FY2012-FY2021, adjusting for inflation. The U.S. Department of Agriculture (USDA) does not sell FCIP policies to farmers directly. Private sector companies--referred to as Approved Insurance Providers (AIPs)--sell and service FCIP policies under two annual agreements with USDA: the Standard Reinsurance Agreement (SRA) and the Livestock Price Reinsurance Agreement (LPRA). USDA provides subsidies to the AIPs to compensate for the cost of selling and servicing FCIP policies, as per the terms specified in the SRA and LPRA."
Library of Congress. Congressional Research Service
Rosch, Stephanie
2022-08-10
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