Tabor City tribune. (Tabor City, N.C.) 1946-1991, 1955-02-02


parts of Columbus County gath
cred last week at Whiteville tc
near State FCI Director Julian
Mann explain the workings OF
crop insurance that he said was
meant to protect the farmer
against sever loss.
The insurance, Federal Cror
Insurance, the group of lenders
were told, is maintained by the
~. S. Department of Agricul-
ture for the purpose of "allevi-
ating distress" to the farmer due
TO weather failures.
Mann was quick to point out
that in no case would the FCI
cover any portion of a farmers
crop other than that part which
would be used to pay for its
raising.
Using graph, Eastern North
Carolina director II. K. James
ilkcncd the program to a stalk
IF tobacco. The top half of the
talk represented the profit that
the farmer could expect from
lis crop. The bottom half repre-
Scntcd the cost to the farmer to
raise that crop of tobacco.
Protects Investment
This insurance is to protect
the farmer against loss in the
bottom half of his crop That
$, the amount il cost him to pro-
luce his CROP" Mann explained.
Working on past histories of
his area and the crop grown
during he past years, the FCI
mas set a figure that represents
the farmers outlay of cash need
ed TO produce his crop.
This figure is proportioned out
into three classes. The first class
calls for total coverage of $3.50.
If a producer lost all of his
crop to wind, rain, drought, or
any of the many things that can
happen TO a crop, and if he we're
listed in the first category, he
would be paid $3.50 per unit.
A farmer in the second group
receives $500 per unit in the
event of 100 per cent distruc-
ton. And man in the third
group receives $500 per unit.
These clasSificationS are de-
tcrmined by the past history of
production on the specific farm.
Each farmer likely to apply for
FCI is already listed on a master
sheet as to his classification.
These beverages cost each
farmer, regardless of classifica-
ton, a premium of S8.75 per
acre. But that cost may be low
cred or raised according to the
needs of the company.
AT present, the Federal Crop
Insurance is getting a large sub
SiStance from the Department of
Agriculture, Mann explained. at
is a stipulation in our charter
that within set time limit, we
must become independent of
federal funds. Until this hap
pens, our premiums will have to
remain a trifle higher that we
would like to have them" he
said.
Mann intimated that after the
FCI built up its own reserve of
funds, the premium rates would
be lowered.
Two Purposes
The program set up by the
FCI is two-fold in purpose,
Man explained. 1t will protect
lending merchants in case of a
disaster to the crops. And 1t will
afford the farmer a method of
paying his debts incurred in
the crop. in case it fails
Failures come in many forms.
Mann said. Some farmers feel
that irrigation is the whole solu-
tion," he remarked. at is not.
Irrigation is fine as far as it
goes, but 1t can not insure
against too much rain, or hail,
or bite, or any number of other
At present, to a large extent,
loans from merchants are being
made on a moral obligation.
Lcndces must know their debt
ors intimately to successfully
operate under this system.
But, according to Mann, the
FCI would lessen this chance Of
loss in case a debtor wasn't what
nc was supposed TO be.
Federal Crop Insurance. in
many cases, is being used as
form of collateral. with the farm
nr signing a portion or all Of his
insurance value against a simu-
lar loan.
Under the "moral system" the
producer no debut pays his debt
If he can. But. Mann pointed out,
in the event of disaster, he
simply can't pay off his debts no
matter how much he wants TO.
And this is where FCI pays
,