WASHINGTON, May 29, 2014 - Socrates said, “The secret of change is to focus all of your energy, not on fighting the old, but on building the new.” Change can be painful and takes a good amount of time and energy. Never is that more true than in government. Often, innovations in science and technology take place long before government has a chance to respond and adapt. Even though agriculture is a dynamic industry, constantly innovating and changing, there is always a lag time between innovation and policy.
There’s nothing new about cover crops – during the Roman Empire, farmers used legumes to improve soil in vineyards – but cover crop policy is very new and still going through some growing pains. Agriculture risk management policy took root in modern agriculture, after synthetic fertilizers had replaced cover crops for enhancing soil fertility. And when cover crops made a comeback over the last decade, USDA’s Risk Management Agency (RMA) policies lagged behind innovation.
Adding to the confusion, RMA is still reeling from the crop insurance abuse in the 1990s when many farmers were caught planting as many as three doomed crops a year during a drought and claiming losses on each one. To prevent further fraud, The Agriculture Risk Protection Act of 2000 created the first crop/second crop rule, stipulating that only the first crop could be insured. Even though cover crops are a practice and not an insured crop, they still bring back bad memories for RMA.
Good vs. bad farming practice
The federal crop insurance program does not cover losses due to negligence or failure to follow what they consider Good Farming Practices. Yet, if you ask USDA for a list of Good Farming Practices, you’ll come away empty handed, because they are defined more by what they are not instead of what they are. For instance, not using enough seed or fertilizer would be considered bad farming practice and render your crop uninsurable. And sometimes, new and innovative practices – like cover crops – can be mistaken for bad farming practice because many agricultural experts do not yet know about them.
RMA’s micro-management of cover crops is based on fears that cover crops could potentially have a negative impact on the yields of the subsequent insured crops. What if the cover crop uses too much water and nutrients or invites weeds and pests? What if the cover crop prevents the producer from planting the cash crop within the acceptable timeframe?
So to limit losses, RMA has enacted guidelines on cover crops. In just the past three years, RMA has enacted numerous rules and changes to the rules, directing specifically how farmers use cover crops before, during or after, the production of an insured commodity crop. In the 2013 cropping year alone, RMA promulgated two changes to cover crop guidance.While there is potential for farmers to experience yield declines with cover crops, the overwhelming experience and farm yield data shows cover crops improve yields of the subsequent insured crops. In a 2012 survey, the Conservation Technology Information Center (CTIC) found that corn following cover crops had a 9.6 percent yield increase and soy improved 11.6 percent after cover crops.
Why just cover crops?
And when put into the larger context of crop insurance and farming, it becomes quite clear RMA is uniquely applying this skepticism only to cover crops. There are at least 74 practices farmers can implement that might have a negative impact on crop yields, yet RMA has not enacted a single rule or regulation on any of these practices:
Not only are there no rules on these potentially yield-impacting practices, but the decision to use or not use any one of these practices would likely not even come up in an insurance company analysis of whether a producer used Good Farming Practices. RMA would simply defer to the judgment of the producer and advice of local agronomic experts. The assumption is, the yield impacts of these 74 practices would feed into the Approved Production History (APH) and therefore, would eventually be reflected in the level of insurance coverage available to a producer. However, the availability and implementation of any of these practices can vary from year to year (just like cover crops) and their yield impacts will depend on the weather (just like cover crops).
Considering all of that variability and the time it takes to impact APH to reflect new practices, APH is a poor means of addressing – or in many cases ignoring – the risk of any one specific practice.
Additionally, RMA treats cover crops differently than other practices when it comes to weather and how it impacts the management or implementation of the practice. If a producer using cover crops experiences a weather caused delay, RMA rules still require them to obtain special guidance from NRCS or extension on approved cover crop termination. This requirement is not placed on any other practice, even though a weather delay or missed application of any practice could just as easily result in significant yield declines for the insured crop.
This is an important distinction by RMA. In the event bad weather causes farmers to delay or entirely miss one of the agronomic practices listed, all yield losses would be considered insured. However, if that delayed or omitted practice involves cover crops and a farmer did not get a note from NRCS or miss a specific RMA deadline by even one day, it is possible that farmer could lose his or her crop insurance coverage entirely.
Bring on the new
Yes, change is difficult and it will always take time for government to catch up with innovation. But it’s time that RMA embrace Socrates’ secret and focus building the new approach to cover crops and Good Farming Practices.
Because frankly, if RMA were to apply the same level of scrutiny to each of these 74 practices as they have for cover crops, if they had to design new rules and guidelines, articulating the proper use and implementation of each of these 74 practices, then changing, tweaking and updating them twice a year, they would have to triple their staff and work in shifts around the clock.
And if America’s producers had to endure the same level of oversight and micromanagement for each of these 74 practices, trying to keep up with changes in the rules and guidelines twice per year and were punished for failing to do so, the fields would soon be empty and the supermarket shelves bare.
#30
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