Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1940-04-24

For the purpose CT stimulating lul-
Their discussion OF the very lhiPot'-
ant subject, "alI-risk" crop llsti-
ance, again bring the matter 10 tne
attention uf the farmers OF North
Carolina.
In recent years "all-risk" crop
insurance has been widely discussed
particularly in the wheat growing
sections of the country. Now mat
"all-risk" crop insurance IS 10 DC
made availablH TO cotton growers
the program will in the lmmcolalc
future be the subject OF general ais
cllssion in all states where cotton IS
grown.
The only reason that cotton was
not included at the time that lhe
Crop insurance Corporation was Gre
atcd and authorized to issue pollcle'
Of "aIl-riSk" insurance to Wheat
growers, was because complete
actual data which would enable
the corporation 20 determine proper
rates for premiums had not been as
semblod The corporation now leeli
that it mas adequate information
upon which to establish SOUND
actuarial basis for an insurance pro-
Gram for cotton growers.
The severe economic suffering and
the distressing consequences caused
ljv crCD failures in different sections
OF the country challenges us IL pro-
vide adequate protection Tor thoSe
engaged IN the business OF farming.
il is believed that "all-riSk crop
insurance is calculated to level out
at least partially the evil effects oil
wide fluctuations in prOductlon'
The type of insurance now made
available will in the event OF crop
failure provide producers with some
income on which TO live, and III
years OF great SURPRISES will miti-
gate in some degree the terrific
force of such surpluscs in dcpreSS-
ing farm commodity prices. AT the
same time "all-risk' crop insurance
will reduce the necessity for the
expenditure of large sums OF public
money in stricken agricultural areas.
Farmers have not heretofore been
able to purchase ''all-riSk' crop m
surance, and the insurance which
they have been able to purchase,
such as hail and tornado insurance
has involved the payment oil eN-
tracrdinarily high premiums.
Not An Invasion of Private Business
Since private companies have not
made "all-riSk' crop insurance avail
able, it can not be said that the pro-
EIynt. Undertaken ny the Federal
'all-risk" crop insurance corporation
invade the field of private business.
The fact is that no private corpora
ton in America today writes all
risk" crop insurance. Private COM
panies have in the past met with
failure in attempts to provide all
risk" crop insurance. These attempts
have failed for several reasons,
principally, Cd because the insur-
ance was put into effect in limited
area, (2) because it attempted 10
project against price declines as
well as yield losses, and (3) because
of the lack Of adequate data for dc
tcrmining degree Of risk. CltizehS
other than farmers can secure m
surance for protection against Inc
risks involved in almost every type
of business or enterprise. UnlOrtIl-
nately, the farmer who has every
.nng invested in growing crops
which are exposed to numerous haZ-
ards, including all the destructive
forces Of nature, as floods, drougntS'
hail, tornados, bugs, beetles ana IN
scctS of every kind that carry Oh
their destructive work beneath, upon
and above the earth, has been ull-
able TO buy at any price any Typ
IT "ail-riSk crop insurance.
Not An Incentive For Careless
Farming
TO avoid the possibility OF all
risk" crop insurance causing farm
ers to become careless III plahllh9'
cuItivating, and harvesting thelf
crops safeguards arc provided Whlch
will prevent such insurance pro
grams becoming an incentive loi
careless farming. The act spccIil~
ATTY DrcvIQes that the insurance
shall not cover losses due to clthc!
the negligence or malleaSailce vi
farmers. The insurance docs not
cover losses due to the failure OF lh'
insured farmer To reSeco III urea
md under circumstances where IT j.
customary to rcsCcd. In some sec
ions Of the country producers Gust
.j,iarily rcsccd wheat and collon
yhca the first seeding fails. Farm
go. Vrrn rcniircd 10 take reasonable
steps to mitigate losses from causes
insured against. The insurance COW
cragc is only to the extent Oh seven
ty-five per cent of the adJuSted aver
age yield y.
Premiums Paid In Kind
The corporation is authorized TO
fix premiums, which may be pay
able either in bushels OF wheat,
1oInds of cotton. or the cash equiv
alcnt The corporation preScrlOeS
rules for converting wheat ao COL
ton premiums into cash equlFaleht'
and the producer normally has the
onion as to form OF payment.
Premiums are paid upon the OASIS
Of the loss experienced in the county
Nv other area where the farm IS 10
Gated. and such other adjustments as
nav he necessary to make the prem
iums for comparable laililS ls:.i anu
Just. The crop ms faiicc a. a.. snii-
templates that credit lol 'iie pay
f. A. LATTA. Insurance
Health - Accident - Lille
HOSDitaliZatOn