Crop Insurance Today Fourth Quarter 2019 - 32

to follow the industry loss procedures when
working claims. This is a vital component of the
industry's program integrity process.
NCIS also strives to provide risk management
education and information about crop insurance
either directly to limited-resource farmers or to
groups who work with them. This helps ensure
that farmers everywhere are adequately informed
about the benefits of having a solid risk management plan in place and how crop insurance can
be part of that.
Again, sharing information through training
and education helps us all catch more fish.

Don't Forget Rule #2
Better lucky than good-
sort of

Just like the "real NCIS" on television (or
streaming), we have rules at NCIS somewhat akin
to the rules of Agent Gibbs. As I mentioned earlier, I fortuitously picked up the fly box with the
floating foam beetles rather than my usual "go to"
Opening Day box of flies. Rule #2 at NCIS is just
that, "Better Lucky Than Good." Unlike fishing,
in crop insurance we cannot rely on good fortune
to save the day. As the famous golfer, Ben Hogan,
used to say, "the more I practice the luckier I get."
By continuing to add and improve upon the
industry actuarial database, by continuing to
expand our industry's agronomic research program, and by continuing to train and educate on
policies and procedures, the industry is ready at
the right time with the right fly at the right place
to succeed.

Execution
It's one thing to have the
information but you still
have to "catch the fish"

Information, good fortune, and education all
matter, but at the end of the day, the angler must
properly set the hook and net the fish. In other
words, proper execution matters. Crop insurance
has become a highly complex business. A lot of
"process" has to come together these days for
the industry to succeed. And much like the trout
stream on Opening Day we all have to execute
coming down the stretch.
The industry can measure its ability to execute on several different levels. First, in terms of
participation, nine out of 10 acres of major field
crops in the United States are covered by crop insurance. In years such as 2011, 2012, and 2019,
32

FOURTHQUARTER2019

crop insurance indemnities for major weather
disasters were paid to farmers in days and weeks,
as compared to traditional disaster assistance,
which can take months or even years. Lastly, the
crop insurance industry's Improper Payment
Rate - a closely watched standardized measure of
waste and efficiency in government programs - is
one of the lowest across all Federal agencies.
There is yet another aspect of execution that
is worth noting. How the industry go about its
fishing does not go unnoticed. The local game
warden inspects for fishing licenses or whether
or not only artificial bait is used at certain times
of the season. Similarly, both state and federal
regulatory authorities check to see if companies
are in compliance with all attendant regulations
and procedures. All else being equal, there is a lot
that goes into a good day's fishing. And, there is
a lot that goes into an efficient and effective crop
insurance system.

In This Issue

While much of the 2019 crop year at NCIS
was focused on helping members serve farmers
to get through a very challenging weather year,
the NCIS actuarial staff was busy filing new CropHail forms and loss costs with state insurance
departments. The work that Therese Stom and
her team does each year to file this information
ensures companies can continue to write this vital insurance product for farmers. And with new
crops to file for 2020, this year was exceptionally
busy. You can read more about the changes in the
lead article in this issue.
NCIS held multiple summer schools and field
days across the United States covering a wide variety of crops. We recap those schools, using pictures to tell the story, beginning on page 8. The
schools would not be successful without the help

and support of the NCIS Regional/State Committees who organize them and the plot leaders
and instructors who teach. Thank you!
In early October, the International Association of Agricultural Production Insurers
("AIAG") met in France to hold its 35th Congress. AIAG was founded in 1951 to serve as an
educational forum to increase awareness of crop
insurance knowledge, practices and experiences from around the world. Sherri Scharff and I
attended the Congress on behalf of NCIS, and
several representatives from the U.S. crop insurance industry were also present. We provide
some highlights from the Congress beginning
on page 26.
On page 13 we introduce you to the latest recipients of the NCIS 1890 Scholarship program.
These students are among the best and brightest
in the country and they represent the next generation of agriculture, whether they are majoring
in ag business, food science, or veterinary medicine. We are proud to help fund a portion of their
education and look forward to hearing of their
successes in the future.
And finally, NCIS visited farmers in New
York earlier this year to ask them why crop insurance is important to them. Their "testimonials" can be found on the Crop Insurance in
America website, but we have introduced you
to them and their stories beginning on page 16.
Many of them are first generation farmers rely
on crop insurance to protect their investment
in agriculture and to ensure the future for the
next generation.
As 2019 draws to a close, we would like to
take this opportunity to wish you and your families a wonderful and Happy Holiday season. May
2020 bring you much happiness and success!
(And Good Luck Fishing!)

Crop Insurance Today Fourth Quarter 2019

Table of Contents for the Digital Edition of Crop Insurance Today Fourth Quarter 2019