This is a primary factor in the high use of crop insurance in the Dakotas. I recommend strongly that efforts are made to continue to support MPCI coverage as an ongoing feature of USDA policy. In addition to providing an excellent risk management tool, the use of crop insurance policies as collateral for operating credit has become increasingly common. We should not underestimate the value that risk management coverage provides to lenders. I cannot underestimate the amount of credit that is made available to farmers through crop insurance.
Lenders are very comfortable lending money based on crop insurance coverage.
This is one of the most important reasons to maintain crop insurance. I would also like to bring to your attention an important immediate concern regarding prevented planting, especially as it is applied to prairie pothole regions. Impact of the Crop Insurance Reform Act of 1998 Mr. Chairman, we appreciate your interest in reforming and improving the crop insurance program. We are optimistic about some of the new products for revenue coverage, and we are supportive of measures which encourage companies to provide new and innovative types of coverage. At the same time, we are cautious about provisions to shift the RMA to a regulator- only status, and believe there are several reasons those provisions should not be enacted at this time.