The administrator of USDA’s Risk Management Agency says crop insurance holders need not worry about coverage in the event of loss. Touring crop damage in Missouri Wednesday, Bill Murphy said he’s often asked whether there’s enough money to cover the expected heavy drought claims. “For our commitments out there right now, we’re fully funded,” Murphy told Brownfield Ag News Wednesday, during a meeting with farmers in Carrollton, Missouri.
“We could have every policy in the country have a complete loss and we have the funding to do it,” said Murphy. “The companies themselves, they share in the risk on our program; they are well financed right now. They’ve come off a good run of years. The last 10 to 15 years have been pretty amazing nationwide, so the companies have had good years, so they’re in very good financial condition, so I don’t see any problem.”
Referring to what he observed on Mid-Missouri farms, Murphy said the drought has left many cornstalks with no ears on them, and other damage that is evident only on close inspection.
“Probably the most surprising to me is some of these soybean fields that got in early,” said Murphy. “From the road, they’re about thigh-high, dark green, and you’re thinking, man, that’s got to have a great crop in it. And you get up close and look at it and it’s three or four pods and it’s starting to shed pods. So it’s just incredible. I don’t think I’ve ever seen damage…the breadth that we’re seeing this year; it’s really something.”
Before anything is done to a damaged crop, Murphy stresses that farmers need to talk to their crop insurance provider.
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