Local Insurance Agents Deliver Crop Insurance Message To Washington Dc

March 22, 2010 - PRLog -- The morning of Tuesday, March 02, 2010, Chris Eddy & Chayito “Chay” Espinoza of Dell’s Insurance accompanied by Congressman John Salazar flew out of Alamosa, on a flight that had been delayed by over an hour, headed to Denver and connecting on to Washington DC. Chris & Chay were headed to Capital Hill, by invitation of the Professional Independent Insurance Agents of Colorado (PIIAC), to urge legislators to oppose the President Obama supported proposed budget reduction of $6.9 billion in crop insurance subsidies for farmer’s over the next ten years.

PIIAC, who invited Chris & Chay, is also know as the Big “I” and was founded in 1896 - making it the nation’s oldest and largest national association of independent insurance agents and brokers. PIIAC represents a network of more than 300,000 agents, brokers and their employees nationally. Its members are independent agents and brokers who can offer customers a choice of insurances, including property, casualty, crop, life, health, employee benefit plans and retirement products, from several different insurance companies.

Congressman Salazar happened to be on the plane with Chris and Chay because he was scheduled for meetings in Denver, before going on to Washington DC where he ironically planned on meeting with Chris and Chay and other members of PIIAC to discuss the ramifications that the loss of the $6.9 billion would have on farmers and crop insurance agents across the United States.

“After leaving Alamosa and arriving late in Denver, Chay and I figured we would have to take a later flight to Washington DC.” said Chris, “But John (Salazar) took it upon himself to check the information on our next flight to Washington DC, discovered that it also had been delayed, and let us know that we could still rush over to the gate and catch our flight to Washington DC.” “Thanks to John we arrived in Washington DC at 12:45pm, right on schedule.” added Chay, “Our luggage however, didn’t make until 1:30am!”

Bright and early the next day Chris & Chay marched up the steps to the offices of Representative Betsy Markey and Congressman John Salazar and to make their rounds on Capitol Hill to explain their concerns of what loosing $6.9 billion in subsidies would do to farmers across the United States and specifically in the San Luis Valley.

“I feel that the proposed $6.9 billion cut in subsidies is a ‘silent monster’ that everyone is ignoring.” said Chris Eddy, “And if the cut is enacted it will be devastating to both farmers and crop insurance agents across America. I strongly support the PIIAC’s stand against cutting farmers’ crop insurance subsidies because during our current time of economic strain and instability, it seems imprudent to slash a program which has helped rebuild America’s farmland.”

Chris also said he is concerned that this capping and cutting of monies would eliminate the essential aspects of competition and service incentives that are vital to the crop insurance program. He fears that with the proposed cuts, 8 out of every 10 farmers who are solely dependent on crops will find themselves having to reduce the number of acres that they can farm, with 5 of them very possibly being forced completely out of farming.

“The proposed $6.9 billion of subsidy cuts proposed and supported by President Obama could be devastating to the San Luis Valley as many of our farmers are dependent on Crop Insurance to survive unforeseen disasters and in securing operating loans from financial institutions.” said Chris Eddy

With financial institutions in small communities being squeezed by the current economy, many are finding it extremely difficult to provide the loans required by farmers. However, if farmers have crop insurance, which can help guarantee that the loans will be paid back in the event of a loss, then financial institutions are protected and are much more likely to provide the necessary funding.

The first draft of the proposed budget reduction started with an initial cut of 8.9 billion over 10 years, but was later reduced to an expected total cut of $6.9 billion over ten years. PIIAC believes that the budget reduction is contradicting Congress’ intent of providing widespread availability of crop insurance to farmers across the country by taking away the incentive for agents to write policies in high risk parts of the country, and by placing arbitrary caps on agent commissions.

It is quite possible that a $6.9 Billion budget reduction would result in agents having to quit delivery of risk management programs to farmers. This could result in farmers having to look to USDA/FSA for their crop insurance purchases and risk management services. Until the early 80’s the government left the sale of subsidized crop insurance to local USDA/FSA offices. However, due to heavy workloads, USDA / FSA employees were never able to develop and implement the subsidized crop programs.

Crop Insurance didn’t take off until the program was turned over to insurance agents who provided risk management for qualifying farmers. Today there are approximately 18,000 agents across the country delivering risk management services to farmers. If USDA/FSA had to take on the task of selling and servicing subsidized crop insurance it is quite possible that once again the program will falter causing farmers to abandon farming. A $6.9 billion cut would not only devastate farmers but it would have a significant negative effect on crop insurance agents like those at Dell’s Insurance Agency, Inc. who employ’s 8 agents plus an inside staff to support them.

The group of PIIAC representatives was headed up by Barbara Fiddler, Executive Vice President of PIIAC, and Shanna Fiddler, Director of the PIIAC Business Organization. Agents from all 50 states were part of the PIIAC initiative to impress upon congressional leaders how various bills could mean the potential loss of much needed benefits to the American public. The main issue Chris & Chay were concerned with is the proposed $6.9 Billion Dollar reduction of subsidized crop insurance.

Chris Eddy, who is a certified insurance counselor / agent and one of the largest crop insurance producers in the United States, was designated as the primary speaker on Crop Insurance for the entire PIIAC group. Chris & Chay attended several meetings where they explained the disturbing ramifications of cutting subsides and urged congressional representatives to take a stand against the proposed reduction in subsidies before it’s too late.

Chay said that she and Chris’ introduction to the various people in the United States Congress will benefit them greatly in the years to come. Especially when providing risk management to farmers using crop insurance and the many other tools available that will make it possible for our farmers to continue to feed America.

In addition to meeting with congressional leaders, Chris and Chay also attended social meetings with Safeco and Colorado Casualty, insurance companies that were also present at the meetings, and a sponsored meeting for PIIAC members and congressional leaders.

Chris & Chay said that they will continue to lobby and send letters to congressional leaders requesting support against President Obama’s recommendations to down size and reduce expenditures that subsidize Crop Insurance.


Located in Alamosa, CO for the last 40+ years Dell’s Insurance Agency, Inc. specializes in Agribusiness Insurance and is one of the largest Crop Insurance Agencies in Colorado.  

Dell’s Insurance Agency, Inc. (www.DellsInsurance.com) is a leading independent insurance agency in Colorado. We write life & health insurance, homeowners, auto, farm & ranch, crop, business, workers' comp, annuities, pet policies… practically anything you may need protected.

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Dell’s Insurance Agency, Inc. is a leading independent insurance agency in Colorado. We write life & health insurance, homeowners, auto, farm & ranch, crop, business, workers' comp, annuities, pet policies… practically anything you may need protected.