Friday, October 08, 2010

FSA and Crop Insurance

I can't resist stealing this from Farm Policy:
" Risk Management Agency Administrator Bill Murphy is pushing wireless records, GPS mapping technologies and smarter business practices to adapt.
“Agent commissions ballooned 35 percent between 2005-2008, thanks in part to the run up in commodity prices and a national shift toward revenue insurance policies, Murphy says. But given the budget constraints in the next farm bill, ‘Congress is not going to stand for paying $4 billion a year in administrative and overhead expenses,’ he adds. ‘That’s twice what the Farm Service Agency (FSA) spends to administer its programs. They don’t want it to happen again.’
Murphy stresses the FSA isn’t seeking to replace the private crop insurance delivery system, but he says ‘other people in government’ may look at it when farm bill discussions begin in earnest. ‘We need to show we’re efficient and we’re lean,’ he tells agents.”
One of the final bitter lessons of my career was driving my employees and KC programmers to try to deliver CAT insurance efficiently, only to find our best efforts were ignored.  What Mr. Murphy seems to be saying is a government bureaucracy is more efficient than private industry.  Imagine that!

(To be fair, "private crop insurance" isn't a real private industry, but I'll take any crumb of comfort I can find.)

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