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Texas Agriculture Archive

January 17, 2003

Crop insurance agreement to remain in force

The U.S. Department of Agriculture has announced that the Risk Management Agency's (RMA) Standard Reinsurance Agreement (SRA) and Aquatic Crop Reinsurance Agreement (ACRA) would remain in effect for the 2004 reinsurance year. The SRA and the ACRA define the terms of reinsurance between RMA and the companies participating in the crop insurance program.

The Agricultural Risk Protection Act of 2000 permits the reinsurance agreements to be negotiated at the discretion of USDA once during the 2001 through 2005 reinsurance years. The renegotiated SRA and ACRA then would be in effect indefinitely or until new legislation comes into force.

The decision to defer cancellation of the SRA until later was made after careful consideration of many factors, according to USDA. The current unsettled nature of the industry was a major concern. This is reflected in lingering drought conditions in some parts of the country coupled with the demise of the largest company participating in the crop insurance program. Moreover, there is a growing recognition of the need to increase operational efficiencies within the companies and to reduce program costs.

"The Agricultural Risk Protection Act of 2000 provided important risk management tools for farmers," said Agriculture Secretary Ann M. Veneman. "Deferring the negotiations will give all parties more time to evaluate ways to improve program effectiveness and to reinforce the strong foundation required for even more effective risk management in the future."

USDA is expected to announce next year that it will seek renegotiation of the SRA and the ACRA that would become effective with the 2005 reinsurance year.

Bryan Bishop to serve on
national YF&R Committee

Texas Farm Bureau will have excellent representation on the American Farm Bureau Federation's Young Farmer & Rancher Committee over the next two years. Bryan and Holly Bishop, who live in the Edmonson community near Plainview, will serve on the farm organization's national YF&R committee.

TFB Organization Programs Director Si Cook, who coordinates Texas AgLead and YF&R programs, said, "I'm really pleased to see Bryan using the leadership skills he developed, in part, in our AgLead II program. I have every confidence he will represent agriculture and Texas Farm Bureau in a manner we can all be proud of."

In their early thirties, the Bishops are members of the Hale County Farm Bureau and have been involved in Texas Farm Bureau and YF&R since 1998. Bryan completed his AgLead training in 2000. He is currently a member of the Hale CFB board of directors and is the chairman of that county FB's YF&R committee. Bryan and Holly are in their second year of serving on TFB's Young Farmer and Rancher committee. Recently, Bryan was the recipient of the Young Farmer Leadership Development Award from the National Wheat Growers Association. The Bishops have two children.

The Bishop's current farming operation consists of 3,500 acres spread across Hale, Swisher and Castro counties.

"We appreciate the opportunity to represent Texas Farm Bureau and the agricultural industry in any capacity," said Bryan Bishop. "We anticipate that this experience will give us the opportunity to widen our agricultural spectrum and allow us take part in developing, supporting, and promoting agricultural policy that will shape our organization as well as our industry."

Oil plant a viable crop?

Agriculture Department researchers says they are checking out a possible new oil-bearing crop for U.S. farmers that could replace current imports of palm and coconut oil.

The cuphea plant—which produces oil that could be used for products ranging from laundry detergent to toothpaste—could be a viable alternative crop for America's farmers.

"The nice thing about this plant, cuphea, is that the market is already there for the oil, and the market is quite large," said Russell Gesch, a researcher with the Agricultural Research Service.

More than 260 species of cuphea grow from South America to the United States. Many of those varieties have been tested in fields in Iowa and Minnesota and 18 have shown potential, at least for those two states.

The plant has small, encapsulated oily seeds. The seeds have a high level of lauric acid—an ingredient used in the detergent industry that currently comes from imported coconut and palm oils.

Notable Quotables

“We urge Congress to approve emergency disaster assistance for crop and livestock producers who had financial losses in 2001 and 2002 because of natural disasters. Such assistance would be consistent with the response by our government to natural disasters in the past, including hurricanes, floods and droughts.

“We believe in fiscal responsibility, but we also believe in responsibility to the men and women who work so hard to deliver our nation’s food security. This farm bill is costing less than anyone expected when it was signed into law. With these savings and the precedence of assistance for Americans who suffer from natural disasters, Congress has the opportunity to pass weather disaster assistance. We hope they will do so as soon as possible.”

American Farm Bureau Federation President Bob Stallman reiterating on Jan. 8 the organization’s belief that disaster assistance is vitally important for the nation’s farm and ranch families.