PIA National — Crop Insurance Action Alert

PIA National — Crop Insurance Action Alert

PIA National has been working with Congress on an important crop insurance issue. At issue is inflation and the 2011 Standard Reinsurance Agreement (SRA). It is the contract between the Federal Crop Insurance Corporation (FCIC) and crop insurers, or Approved Insurance Providers (AIPs).

The contract established a cap on the administrative and operating (A&O) expense subsidy in most instances. Unfortunately, the cap has the RMA not making adjustments for inflation in 2016.

So all the payouts now are based in 2015 dollars.

As you know, inflation has run amok the last few months. An adjustment is needed to help agents selling crop insurance keep up. So PIA National has issued an action alert and is urging you to contact the Senate members in your state and the House representative in your district about this issue.

The association wants you to ask your congressional delegation to help get payouts adjusted to 2022 dollars.

Jon Gentile is the PIA National Vice President of Government Affairs. He said thingsare now at crisis stage.

“The actions have resulted in effective cuts to agent commissions, during a historically challenging time for crop insurance agents,” he recently wrote. “PIA has been working with allies to support an initiative this year to secure two provisions to begin to address the inflation adjustment issue through the appropriations process. The action alert asks Congress to include the provisions in the year FY 23 appropriations package.”

He noted that the House Agriculture Appropriations Bill includes some equitable relief for specialty crops and the Senate Agriculture Appropriations Bill includes report language confirming that the U.S. Department of Agriculture has the legal authority to reinstate the inflation adjustment and provide equitable relief for specialty crops.

“PIA is urging Congress to include both provisions in the final FY 2023 appropriations package. If the two provisions are adopted in the end of the year appropriations package it will make clear that Congress believes the RMA has the legal authority to move forward with A&O relief for all agents through an annual inflation adjustment,” Gentile said. “It will also provide some immediate relief in the case of specialty crop A&O because the circumstances are severe and urgent.”

Click this link to get more information from the PIA National blog: https://piaadvocacy.com/2022/11/10/pia-action-alert-ask-congress-to-provide-inflation-relief-for-crop-agents/

To take action, click this link and PIA will help you contact your congressional representatives: https://www.pianational.org/advocacy/contact-your-legislators?vvsrc=%2fcampaigns%2f98749%2frespond

Source link: PIA National — http://bit.ly/3AfJNi0

About PIA Western Alliance

The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.


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