Agriculture Secretary Dennis Wolff announced that the Pennsylvania Department of Agriculture would offer more than $2 million in financial assistance to farmers by covering 8 percent of their crop insurance premiums for 2005.
“Each growing season is met with uncertainty,” said Wolff. “By helping farmers to purchase crop insurance, offering educational opportunities and providing new products, the Pennsylvania Department of Agriculture is working to protect the interests of crop producers.”
Since 2000, the Pennsylvania Crop Insurance Assistance Program – a
partnership between the General Assembly, USDA, crop insurance industry, farmers and the Department of Agriculture – has been working to safeguard the efforts of the farming community against inclement weather. Over the last five years, the Department of Agriculture contributed nearly $10 million toward producer premiums.
Thanks to this cooperative venture, nearly 16,000 policies were written in 2005, providing nearly $300 million in protection.
“Crop insurance policies allow producers to return to profitability sooner after being confronted by disaster,” said Wolff. “In the last five years, $127 million in crop insurance loss payments have been paid to producers, compared to just $31 million in paid premiums. Put another way, this equals a return of $4 for every dollar invested in premiums.”
Thanks to greater flexibility allowed under Act 208 of 2004, the
Department of Agriculture is able to increase the premium assistance to Pennsylvania farmers.
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