From PIAND PROFAX 07-19-2010 Crop Hail: SRA Signing A Done Deal. All 16 Approved Insurance Providers for crop hail insurance have signed Draft #3 of the five year SRA Contract. So what is next? The headlines in The Bloomburg read "The crop insurance industry will be forced to consolidate by a U.S. Government plan to spend $6 billion less on subsidizing farmer policies". "The deal, which companies HAD to sign to continue to receive subsidies, will drive some insurance companies out of business within two years", said Bob Parkerson, the head of NCIS. The handwriting is on the wall as the USDA/RMA restricts the private partnership on the crop insurance program.  In the early '80s, over 85 insurance companies wrote crop insurance for farmers. It has slowly dropped to 16  insurance companies with only really 4-5 major writers. The new 5-year SRA agreement will undoubtedly force consolidation in the industry. How much? We'll have to wait and see.

For those agents who have questions on Crop-Hail, did you know that NC ranks 17th in Crop-Hail premium in USA. Crop-Hail agents in NC are going to get 50% less commission or no commission if the present SRA and Farm Bill is passed by the Obama Administration. Contact your NC Congressional delegation to stop Obama administration on this.

Click here for a list containing NC Congressional contact information.