Three national insurance agents’ groups are voicing their opposition to proposed agent commission soft caps and profit-sharing proposals as part of the Federal Crop Insurance Program (FCIP).

The Independent Insurance Agents & Brokers of America (The Big I), along with the National Association of Crop Insurance Agents and the National Association of Professional Insurance Agents, outlined their concerns in a letter to USDA Under Secretary for Farm and Foreign Agricultural Services James Miller and Risk Management Agency (RMA) Administrator William Murphy.

A new draft of the Standard Reinsurance Agreement, the financial deal between the Federal Crop Insurance Corp., which manages the program, and approved crop insurance companies includes cuts totaling $6.9 billion over the next decade, according to the agents’ groups, and proposes to cap the earning ability of crop insurance agents and introduce a “profit sharing” agreement for agents who participate in FCIP.

“Crop insurance agents have proved instrumental in achieving the goal of helping farmers make well-informed risk assessments and choices about the coverage they purchase,” the three agents’ groups wrote in the letter. “We do not believe that the RMA proposals …“reform” the program, but rather needlessly weaken the program and damage an aspect of the rural economy that currently provides over 18,000 jobs.”

In a statement, Charles Symington, the Big I’s senior vice president of government affairs, said, “limiting marketplace competition for agents who provide high quality customer care to their clients will result in a decline in the efficient and effective delivery of services, as well as lead companies to set a standard commission rate.

“By disincentivizing agents to write policies in high risk parts of the country and by placing arbitrary caps on agent commissions, RMA is contradicting Congress’ intent of providing widespread availability of crop insurance to farmers across the country,” he said.

The Big I said there are 18,000 agents nationwide working to ensure that America’s farmers and ranchers receive the best services through the FCIP.

“During a time of great economic strain and instability it seems imprudent to slash a program which has helped rebuild America’s farmland,” said Symington. “The Big ‘I’ is greatly concerned that this cap would eliminate the essential aspects of competition and service incentives that are vital to the crop program.”