This will not help the crop insurance industry at all. The RMA is taking and cramming this down the companies throats without listening to what will work. We have had several companies fold or get out of the industry since margins are tight already. This will shrink them even more. By the government increasing the risk that the companies must take on, it will not be profitable for them to write in high risk areas. When this happens the very people who are supposed to be protected by this program will be left out in the cold since companies will pull out of those states or areas. Without this backing many banks cannot loan money…and the ripple efect in rural areas will spread.
This will not help the crop insurance industry at all. The RMA is taking and cramming this down the companies throats without listening to what will work. We have had several companies fold or get out of the industry since margins are tight already. This will shrink them even more. By the government increasing the risk that the companies must take on, it will not be profitable for them to write in high risk areas. When this happens the very people who are supposed to be protected by this program will be left out in the cold since companies will pull out of those states or areas. Without this backing many banks cannot loan money…and the ripple efect in rural areas will spread.