If Babcock had his way and farmers were given $20/ac or so to buy insurance as he proposes. Most farmers would bank the money, not buy insurance and if there were a disaster, lobby their congressman for a disaster program. We would be back at square one.

I am surprised he is as critical as he is about the insurance program. I worked with him for a few years trying to develop a program, we were not successful. (Mind you what I am to bring up was the way it was in the 90s and early 00s). What he and our chairman had in mind was just to complex. It became obvious to me that delivery was were the money was and I pushed for that as an outcome. The problem with insurance is we are not the consumer! That is a fact... I know it is hard to swallow but that is the view at the RMA. I was in the room when it was stated, RMA designs programs that companies consume for resale. For insurance companies to want to sell the plan it has to be profitable for them (they sure got that part right). The reality is for every dollar we spend on a insurance policy there was nearly a dollar of potential income for the company/agents. There is where the excess comes from, the only farmers that really cut a fat hog on insurance is the ones willing to cheat. That reminds me, while in the meeting we were discussing optional units vs whole farm. As you recall there used to be a 10% difference in premium, I stated that was not enough of a discount to encourage whole farm. During the discussion it was pointed out that unit production included a 35% moral hazard. It was also stated that they could adjust within 5% via satellite but farmers would not accept not having a human presence. Probably true on both counts, about the same time I was part of a "ground Truthing" of satellite imagery. They were quite close, they took hand samples of a field with out my knowledge for 3 year in a row. The only way I found out about it is they thought there was nemotoads in the field and they asked permission to get soil tests large enough to be noticed.

I know this will not be popular but I have said all along. If you want insurance to be sustainable you have to get it back in hands of the FSA office. Insurance company's have created all these various plans, presented them to RMA for developing risk factors and offered in prime locations for acceptance. These programs are developed not for our benefit but theirs. Your corn growers association and Farm Bureau is very good at this and Babcock is their main resource.