Applause for Insurance Rate Adjustments That Will Reduce Costs for Ohio Farmers

Press Release

U.S. Senator Rob Portman (R-Ohio) today said he welcomed the U.S. Department of Agriculture's (USDA) decision to change the methodology used to set premium rates in the Federal Crop Insurance Program, which should reduce annual insurance costs for Ohio corn producers by 11 percent and for soybean producers by 13 percent. The change was the result of an independent study conducted to determine the actuarial accuracy of the current rating of corn and soybeans. Earlier this month, Portman and other senators sent a letter encouraging the USDA to publish and rely on the study to inform any adjustments to insurance ratings in a timely and transparent manner.

"This more accurate rate should save millions of dollars for Ohio farmers, allowing them to expand and add jobs." said Portman. "I am glad that the USDA chose to act swiftly on this new information, as it helps ensure a fair and actuarially sound insurance crop program."

According to the USDA, on average, the new insurance rates should reduce corn farmers' rates by 7 percent and soybean farmers' by 9 percent. Earlier this year, Senator Portman was pleased to have been directly involved in passing the Columbia, Panama, and South Korea free trade agreements. In total, these agreements are expected to increase exports from Ohio alone by $55 million per year, and add nearly 500 jobs to the Ohio economy, according to the American Farm Bureau Federation.

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