Max Baucus: “just some basic points to clear the air and to get the facts straight. It has been suggested that we have crop insurance…”

“just some basic points to clear the air and to get the facts straight. It has been suggested that we have crop insurance and why isn't crop insurance sufficient to compensate farmers and ranchers through disaster. The argument is made that we have a crop insurance program. Why do we need disaster assistance? The answer is quite simple. First of all, the crop insurance program does not cover livestock. So that point is irrelevant. Second, with respect to crops, program crops, there are a couple of points. No. 1, very few farmers buy Federal crop insurance. Why? Because it is so expensive and the coverage is so poor. Even with reform of the crop insurance program, it is not good enough for farmers and ranchers to participate in it. It just is not available as a practical matter. In addition to that, it is unavailable today for crop losses in 2001. If you had a loss on your crop in 2001, you cannot go now to buy Federal crop insurance in 2002 which will cover losses in 2001. It is too late. Even if you were to buy Federal crop insurance in 2002, you would not want to, a lot of farmers do not want to because, as I said, it is so expensive and the coverage is so poor. The last disaster bill passed here covered losses basically because prices were so low.”