RMA, NRCS Issues at USDA      06/25 09:12

   Fordyce Addresses Crop Insurance Updates, NRCS Challenges

   USDA Undersecretary Richard Fordyce told lawmakers that commodity program 
implementation is nearing completion, while lawmakers raised concerns about the 
likely return of prevent plant buy-up coverage, oversubscribed conservation 
programs, staffing shortages, ad hoc disaster payments and crop insurance costs 
in low-risk states.

Jake Zajkowski
DTN Ag Policy Editor

   WASHINGTON (DTN) -- A day after the Senate farm bill package was released, 
the House Agriculture Committee met to discuss USDA's implementation of the One 
Big Beautiful Bill Act, which covers roughly 85% of dollars set aside for USDA, 
including important changes to commodity programs, crop insurance and 
conservation.

   Richard Fordyce, USDA's undersecretary for Farm Production and Conservation, 
highlighted the agency's modernization efforts in his testimony, including the 
allocation of 30 million additional base acres nationwide, higher reference 
prices for Agricultural Risk Coverage and Price Loss Coverage (ARC and PLC) 
programs beginning with October payments and expanded crop insurance coverage 
options through the Risk Management Agency (RMA).

   "We need to modernize our delivery systems," he said. One way he hopes to 
achieve that is through One Farmer, One File digitization of paperwork.

   PREVENT PLANT BUY-UP

   The Federal Crop Insurance Corporation in December removed the 5% buy-up 
coverage for prevent plant from federal crop insurance.

   Rep. Angie Craig, D-Minn., questioned Fordyce over whether USDA is going to 
reinstate the buy-up coverage.

   Fordyce acknowledged the public response to the rule change, noting USDA 
received approximately 350 comments. "Overwhelmingly, those comments were to 
reinstate PP 5%," he said. "That is under consideration currently ... I am 
positive personally that we'll have a positive resolution to that."

   The timeline for its return would begin with notifying crop insurance 
companies that the option is again under consideration.

   REEVALUATING PREMIUMS

   Rep. Dusty Johnson, R-S.D., Eric Sorensen, D-Ill., and Nikki Budzinski, 
D-Ill., also raised concerns about crop insurance premiums in low-risk, 
low-loss-ratio states, arguing that farmers in those states often pay premiums 
that do not accurately reflect their level of risk.

   "In the Midwest, we have some of the lower loss ratios in the country, 
meaning farmers are paying in significantly more than they're getting out 
nationally," Budzinski told Fordyce.

   In her district across central and southern Illinois, she said the average 
loss ratio is below 0.4.

   Budzinski asked whether USDA would consider adjustments to the risk pool to 
provide relief for Midwestern states. Fordyce responded that provisions signed 
into law last summer should result in lower premiums and higher guarantees. 
"It's a better risk management product across the board," he explained.

   Fordyce added that RMA recently completed a state rating study on loss 
ratios and committed to sharing the results with the committee. Budzinski also 
asked about a mandatory base-acre update. Fordyce expressed interest in 
obtaining a report from USDA's Chief Economist examining whether a base-acre 
update could lower the budget score for farm safety net programs.

   CONSERVATION CONCERNS

   Farmers, like their representatives in Congress, continue to point out that 
some conservation programs, such as the Environmental Quality Incentives 
Program (EQIP), are oversubscribed and hampered by staffing shortages. 
Lawmakers also noted that some controversial rulemaking proposals -- including 
an effort to eliminate prevent plant buy-up coverage -- may be reversed 
following public feedback.

   The One Big Beautiful Bill Act (OBBBA) provided more than $34 billion 
dollars for conservation through fiscal year 2031, marking the largest 
long-term investment in Natural Resources Conservation Service (NRCS) in 
decades, Fordyce noted.

   Rep. Derrick Van Orden, R-Wis., raised concerns of the basic functions of 
NRCS, application timelines and lengthy ones for conservation programs, noting 
EQIP applications can average three months while Conservation Stewardship 
Program (CSP) applications can take up to six months.

   "We certainly have an opportunity to shorten," Fordyce responded. "There may 
be design work that has to happen as part of the EQIP project, so not an 
excuse, it needs to be faster."

   Van Orden encouraged USDA to look at other federal agencies for examples of 
efficient program delivery and urged continued improvements as the remainder of 
the farm bill is implemented.

   EQIP AND CSP FUNDING

   Rep. Frank Lucas, R-Okla., described EQIP and CSP as consistently 
oversubscribed programs and questioned how USDA would manage increased funding 
demand on it most popular programs.

   Last year, the number of farmers applying for EQIP and CSP contracts 
increased between 10% and 15%. However, the number of approved EQIP contracts 
fell by 38%, while CSP contracts declined by 21%, according to an Institute for 
Agriculture and Trade Policy report.

   But demand continues to outpace available resources. "I would say that there 
probably are instances where we do have maybe potentially a staff shortage, 
which could impact that," Fordyce said.

   Rep. Alma Adams, D-N.C., also questioned Fordyce about a new $700 million 
dollar regenerative agriculture pilot program funded through existing 
conservation programs. The initiative redirects $400 million dollars from EQIP 
and $300 million from CSP.

   She argued the program was not explicitly authorized by Congress and could 
reduce funding available for traditional conservation projects. Fordyce 
responded that the initiative focuses on soil health and whole-farm 
conservation planning using existing conservation practices and does not 
displace farmers seeking standard conservation assistance.

   Watch the committee hearing here: 
https://www.c-span.org/program/house-committee/agriculture-department-undersecre
tary-on-farming-legislation/681682

   Institute for Agriculture and Trade Policy's analysis on EQIP participation: 
https://www.iatp.org/one-step-forward-two-steps-back-conservation

   Read more at, "Farmers Lose PP Buy-Up Under New Rule," 
https://www.dtnpf.com/agriculture/web/ag/news/article/2025/12/03/new-crop-insura
nce-rule-ends-buy

   Jake Zajkowski can be reached at jake.zajkowski@dtn.com

   Follow him on social platform X @jzajkow




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