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RMA, NRCS Issues at USDA 06/25 09:12
Fordyce Addresses Crop Insurance Updates, NRCS Challenges
USDA Undersecretary Richard Fordyce told lawmakers that commodity program
implementation is nearing completion, while lawmakers raised concerns about the
likely return of prevent plant buy-up coverage, oversubscribed conservation
programs, staffing shortages, ad hoc disaster payments and crop insurance costs
in low-risk states.
Jake Zajkowski
DTN Ag Policy Editor
WASHINGTON (DTN) -- A day after the Senate farm bill package was released,
the House Agriculture Committee met to discuss USDA's implementation of the One
Big Beautiful Bill Act, which covers roughly 85% of dollars set aside for USDA,
including important changes to commodity programs, crop insurance and
conservation.
Richard Fordyce, USDA's undersecretary for Farm Production and Conservation,
highlighted the agency's modernization efforts in his testimony, including the
allocation of 30 million additional base acres nationwide, higher reference
prices for Agricultural Risk Coverage and Price Loss Coverage (ARC and PLC)
programs beginning with October payments and expanded crop insurance coverage
options through the Risk Management Agency (RMA).
"We need to modernize our delivery systems," he said. One way he hopes to
achieve that is through One Farmer, One File digitization of paperwork.
PREVENT PLANT BUY-UP
The Federal Crop Insurance Corporation in December removed the 5% buy-up
coverage for prevent plant from federal crop insurance.
Rep. Angie Craig, D-Minn., questioned Fordyce over whether USDA is going to
reinstate the buy-up coverage.
Fordyce acknowledged the public response to the rule change, noting USDA
received approximately 350 comments. "Overwhelmingly, those comments were to
reinstate PP 5%," he said. "That is under consideration currently ... I am
positive personally that we'll have a positive resolution to that."
The timeline for its return would begin with notifying crop insurance
companies that the option is again under consideration.
REEVALUATING PREMIUMS
Rep. Dusty Johnson, R-S.D., Eric Sorensen, D-Ill., and Nikki Budzinski,
D-Ill., also raised concerns about crop insurance premiums in low-risk,
low-loss-ratio states, arguing that farmers in those states often pay premiums
that do not accurately reflect their level of risk.
"In the Midwest, we have some of the lower loss ratios in the country,
meaning farmers are paying in significantly more than they're getting out
nationally," Budzinski told Fordyce.
In her district across central and southern Illinois, she said the average
loss ratio is below 0.4.
Budzinski asked whether USDA would consider adjustments to the risk pool to
provide relief for Midwestern states. Fordyce responded that provisions signed
into law last summer should result in lower premiums and higher guarantees.
"It's a better risk management product across the board," he explained.
Fordyce added that RMA recently completed a state rating study on loss
ratios and committed to sharing the results with the committee. Budzinski also
asked about a mandatory base-acre update. Fordyce expressed interest in
obtaining a report from USDA's Chief Economist examining whether a base-acre
update could lower the budget score for farm safety net programs.
CONSERVATION CONCERNS
Farmers, like their representatives in Congress, continue to point out that
some conservation programs, such as the Environmental Quality Incentives
Program (EQIP), are oversubscribed and hampered by staffing shortages.
Lawmakers also noted that some controversial rulemaking proposals -- including
an effort to eliminate prevent plant buy-up coverage -- may be reversed
following public feedback.
The One Big Beautiful Bill Act (OBBBA) provided more than $34 billion
dollars for conservation through fiscal year 2031, marking the largest
long-term investment in Natural Resources Conservation Service (NRCS) in
decades, Fordyce noted.
Rep. Derrick Van Orden, R-Wis., raised concerns of the basic functions of
NRCS, application timelines and lengthy ones for conservation programs, noting
EQIP applications can average three months while Conservation Stewardship
Program (CSP) applications can take up to six months.
"We certainly have an opportunity to shorten," Fordyce responded. "There may
be design work that has to happen as part of the EQIP project, so not an
excuse, it needs to be faster."
Van Orden encouraged USDA to look at other federal agencies for examples of
efficient program delivery and urged continued improvements as the remainder of
the farm bill is implemented.
EQIP AND CSP FUNDING
Rep. Frank Lucas, R-Okla., described EQIP and CSP as consistently
oversubscribed programs and questioned how USDA would manage increased funding
demand on it most popular programs.
Last year, the number of farmers applying for EQIP and CSP contracts
increased between 10% and 15%. However, the number of approved EQIP contracts
fell by 38%, while CSP contracts declined by 21%, according to an Institute for
Agriculture and Trade Policy report.
But demand continues to outpace available resources. "I would say that there
probably are instances where we do have maybe potentially a staff shortage,
which could impact that," Fordyce said.
Rep. Alma Adams, D-N.C., also questioned Fordyce about a new $700 million
dollar regenerative agriculture pilot program funded through existing
conservation programs. The initiative redirects $400 million dollars from EQIP
and $300 million from CSP.
She argued the program was not explicitly authorized by Congress and could
reduce funding available for traditional conservation projects. Fordyce
responded that the initiative focuses on soil health and whole-farm
conservation planning using existing conservation practices and does not
displace farmers seeking standard conservation assistance.
Watch the committee hearing here:
https://www.c-span.org/program/house-committee/agriculture-department-undersecre
tary-on-farming-legislation/681682
Institute for Agriculture and Trade Policy's analysis on EQIP participation:
https://www.iatp.org/one-step-forward-two-steps-back-conservation
Read more at, "Farmers Lose PP Buy-Up Under New Rule,"
https://www.dtnpf.com/agriculture/web/ag/news/article/2025/12/03/new-crop-insura
nce-rule-ends-buy
Jake Zajkowski can be reached at jake.zajkowski@dtn.com
Follow him on social platform X @jzajkow
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