Letter to Tom Vilsack, Secretary of the Department of Agriculture - Implementation of Supplemental Coverage Option

Letter

Date: June 9, 2014

Dear Secretary Vilsack,

As you are well aware, the Agriculture Act of 2014, the Farm Bill, is not only important for our farmers and ranchers, but it is of critical importance to every American who benefits from the highest quality, lowest cost food supply in the world. Through committee, floor, and conference consideration, we strove to produce a bill that provides producers with strong risk management options by strengthening crop insurance. I am particularly concerned with your department's implementation of the new Supplemental Coverage Option (SCO).

SCO was designed to enable producers to purchase a supplemental crop insurance policy beyond their individual farm-based policy. Based on existing timelines provided by your department, I am concerned that tools meant by Congress to be available to farmers beginning with the 2015 crop year might not be ready in time. This is of concern as the Farm Bill specifically requires that SCO be made available for the 2015 crop year.

In addition, I am concerned that SCO is made available to all insurable crops produced in all counties no later than the 2016 crop year. If necessary, the department should use its contracting authority to get the job done in a timely fashion. Agriculture supports more than 16 million jobs across this country, and our producers need this enhanced crop insurance risk management option to be made available as quickly as possible.

I appreciate the enormity of the job you have to do in implementing the Farm Bill, and I want to work together to get ahead of potential problems or delays before they occur. Thank you for your consideration. Please let me know if you need additional information or resources in order to implement SCO in a manner consistent with Congressional intent.

Sincerely,

/s/

John Hoeven
U.S. Senator


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