This is a challenging time to be a farmer. Commodity prices have fallen from the highs we saw a few years ago, but many of the costs of raising a crop haven’t come down with them. Fertilizer, seed, equipment, land costs have all continued to put pressure on farm budgets. Across the country, farmers are sharpening pencils, evaluating every expense, and looking for ways to manage risk in an environment where margins are getting tighter by the day.

For decades, crop insurance has been one of the most important risk management tools available to farmers. It provides certainty in an inherently uncertain business and helps protect operations from weather disasters, market disruptions, and other circumstances outside a farmer’s control. It is a program Illinois farmers value and support.

However, support for the program shouldn’t prevent us from asking whether it is working as fairly for Illinois farmers as it should. One statistic continues to stand out. Over the last decade, Illinois has averaged a crop insurance loss ratio of roughly 0.40. In simple terms, Illinois farmers have received less than 40 cents in payments for every dollar paid into the program. Nationally, the average loss ratio is double, averaging at 0.80 (Coppess, Schnitkey, Sherrick, et. al).

No farmer wants to collect an insurance payment. A low loss ratio can be a sign of productive farmland, sound management, and favorable growing conditions.  Nevertheless, when the difference between Illinois and the national average remains that large over an extended period of time, it raises legitimate questions about whether the program’s assumptions accurately reflect the risks faced by Illinois producers today.

Agriculture has changed dramatically over the years. Yields have increased, technology has advanced, and production costs have risen significantly. Yet many farmers believe the data used to calculate premiums and coverage levels has not kept pace with those changes. As a result, Illinois farmers may be paying into a system that does not fully recognize the realities of modern production agriculture in our state. Unfortunately, the Risk Management Agency is limited by statute in making changes to crop insurance, meaning legislative action is needed to fix this issue.

Fortunately, Congress has an opportunity to address these concerns as work is currently being made on the next farm bill. The Senate’s draft of the Agricultural Act of 2026 opens the door for important conversations about strengthening and modernizing the crop insurance program.

Illinois Soybean Growers will be actively engaged throughout the farm bill process, advocating for a crop insurance program that remains strong, reflects today’s production costs and risks, and treats Illinois farmers fairly. Illinois farmers have been strong partners in making crop insurance one of the most successful components of federal farm policy, and as lawmakers consider its future, we want to ensure it continues to work as intended for the farmers who rely on it every year. We are asking for a program that keeps pace with modern agriculture and delivers the fairness, reliability, and meaningful protection Illinois farmers deserve.