How Tariff Battles Impact Crop Insurance

USDA is considering issuing assistance payments to farmers in response to tariffs. Doug Yoder, agency manager with Country Financial, explains how those payments could affect crop insurance coverage and decisions.

“Last year, in 2024 USDA published a stat that farm-level bankruptcies in 2024 were 55% higher than they were in 2023 so obviously we're in tough times for farmers. I don't have that stat for this year, but about midway through this year, it was noted that we're already above pace this year than it were last year. So the problem continues, and then the tariff battles, maybe that's impacted some commodity prices.”

Yoder says the last time this happened, the administration came out with a market facilitation program, which provides assistance to farmers and ranchers with commodities directly impacted by foreign retaliatory tariffs, resulting in a loss of traditional export markets.

“But anytime they come out with a payment like this, farmers have two choices. One, just stick the proceeds in your pocket, say thank you, or use those proceeds to make sure you have good coverage. And I think that's one reason we've seen crop insurance ramp up usage ramp up over years, as farmers haven't just taken those payments and stuck in their pocket, they've used it as an investment to make sure they're well protected in this very perilous thing we're in. They need protection right now, obviously.”

Doug Yoder with Country Financial.