RCIS Head Jason Meador testifies on Farm Bill Reauthorization

Jason Meador, Head of Rural Community Insurance Services (RCIS), recently delivered testimony in front of the Senate Agriculture, Nutrition, and Forestry Committee – Subcommittee on Commodities, Risk Management, and Trade. He joined other witnesses within the crop insurance and banking industries providing timely testimony and discussion on the challenges and opportunities faced by the crop insurance industry as Farm Bill reauthorization is projected for a vote by members of Congress this Fall.

Meador, who sits on the Board of Directors of the Crop Insurance and Reinsurance Bureau (CIRB), was invited to testify before the subcommittee on their behalf. RCIS is the crop insurance business of Zurich North America and one of 14 Approved Insurance Providers (AIPs) that administer the Federal Crop Insurance Program.

“It was an honor for RCIS to represent CIRB in sharing the importance of crop insurance and the vital role it plays in providing risk management to farmers and ranchers,” Meador said.

To kick off the hearing, the Chair of the Subcommittee on Commodities, Risk Management, and Trade, Tina Smith (D-MN), underscored how the importance of securing food supply is contingent on food producers having the necessary tools to lessen the negative impact of supply chain disruptions, the effects of climate change, and high input costs. Chair Smith also mentioned her interest in what the committee can do to assist with providing more access to risk management programs for small and mid-size farms. Similarly, Ranking Member Cindy Hyde-Smith (R-MS) echoed the same sentiment regarding the challenges farmers continually face within a volatile market. She noted the importance of acknowledging the next generation of farmers and preserving the industry.

Meador’s testimony centered around the complementary relationship between Crop Insurance and climate-smart agriculture; Crop Insurance and disaster assistance; Improvements to Section 508(h) (a section in the Federal Crop Insurance Act promoting innovative improvements to the Crop industry); and the Administrative and Operating (A&O) expenses within the Federal Crop Insurance Program.

He urged Congress to maintain program flexibility that allows farmers to make decisions based on the unique challenges facing their region and individual operations and ensure the future integrity of the program through a continued strong public-private partnership.

“I believe that crop insurance is the best tool available to farmers to manage the risks they face and to protect their livelihoods,” Meador stated in his testimony. “Crop insurance successfully meets the needs of hundreds of thousands of farmers today and we believe can address additional challenges.”

He also discussed how crop insurance remains farmers’ first line of defense against climate change and natural disasters, reminding decision-makers that any intersection between crop insurance and climate should be incentive-based and crop insurance funds should not be a way to pay for the development of additional disaster programs.

During the Question-and-Answer portion of the hearing, both Senators and witnesses discussed access to credit during periods of high inflation and the benefit of increasing the Farm Service Agency (FSA) loan limits; the flexibility of meeting the needs of diverse producers nationwide including whole farm coverage; and the incentives available to young farmers when pursuing a career in agriculture.

When asked if bank failures have increased the cost of capital as it pertains to Crop insurance, Meador maintained that RCIS “has access to broader capital and is less affected by increased costs of capital, and in this case, investments focus on assets matching liability, so liquidity issues are different.”

When asked what could be done to get farmers a higher level of crop insurance coverage and what role could supplemental and advance coverage play, Meador stated that “Crop insurance is the most important risk management tool, and the 508(h) program allows for new products to enhance the program, including area-based coverage plans, premium discounts, and index products for additional coverage.” Adding that, “crop insurance is currently farmers’ first line of defense” against climate change.

Lastly, Meador informed the committee of the RCIS apprenticeship program, and its benefits for young farmers. "RCIS will pay young adults or military veterans to get an agriculture degree from Northeast Iowa Community College while working (at RCIS) and graduates are guaranteed a full-time job with RCIS after graduation.”

To watch the full May 4 Senate subcommittee hearing, including Jason Meador’s testimony, which begins at 55:50, visit Commodity Programs, Credit, and Crop Ins... | Senate Committee On Agriculture, Nutrition & Forestry.