Last September, a district court judge agreed and ordered USDA to pay the agreed-upon amount. That has not happened, and that is why Farm Bureau felt it imperative to file a friend of the court brief. The CRC policy is a relatively new kind of federally reinsured crop insurance policy designed to provide farmers with a revenue guarantee that would protect them from market price volatility as well as from traditionally insured production risks such as drought. The CRC policy is governed by the Federal Crop Insurance Act. It is offered by the government through private insurance companies and reinsured by the Federal Crop Insurance Corporation.
Farmers rely on crop insurance as loan collateral for the farm loans they negotiate each year.
If the district court decision is overturned, it will set a dangerous precedent. It could give USDA the ability to renege on its agreements any time that it wants. If USDA wins its appeal, the entire system of CRC Crop Insurance will be in havoc. Crop insurance policies will be completely unpredictable. Farm Bureau represents many North Dakota farmers and ranchers who have a direct financial interest in the outcome of this decision.