This provision should improve financial efficiency of delivering CAT insurance and is consistent with GAO and OIG recommendations. Growers have voiced approval of board changes in other proposed legislation. Insurance price reflects value of crop in field and not that which is marketed. Price used to calculate indemnity should reflect season average market price calculated from NASS records. Traditional crop insurance does not reflect high cost of specialty crop production.
Growers prefer cost of production insurance as it more accurately reflects their investment risk.
Weakness of Current Plans SCIA Provision Discussion 14. Current program administration is not sufficiently flexible to respond to local needs. State committees should have the ability to tailor contracts to local conditions. Trade associations are in the best position to educate growers as to insurance options and benefits. Trade associations may pay fee for CAT insurance.