FOR IMMEDIATE RELEASE
November 9, 2004
Contact:  Erin K. Kelly
(717) 846-2828
ekelly@pasen.gov
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Senate Passes Waugh's Crop Insurance Legislation

HARRISBURG – Senator Mike Waugh's (R-York) Senate Bill 912 gained unanimous support from the Senate yesterday to bring Pennsylvania's agricultural producers one step closer to having a permanent crop insurance protection program.

Waugh's legislation would continue and permanently establish in Title 3 (Agriculture) the crop insurance program created through the Drought, Orchard & Nursery Indemnity & Flood Relief Act, Act 57 of 1999. As a result of the drought in 1999 a drought relief package was created, which included a state subsidy of up to 10% of the cost of the insurance premium for Federal crop insurance protection for farmers.

"Although this past summer Pennsylvania was fortunate to not be subjected to drought conditions, previous years have proven significantly difficult and financially burdensome to many PA producers," said Waugh. "We want to encourage them to manage their own risk for the times they find themselves losing crops due to a dry season or other damaging circumstances."

Specifically, under Waugh's legislation the Department of Agriculture would establish a program to educate producers on the benefits of Federal crop insurance and risk management practices, and to promote the purchase of such insurance. As was the case in the original drought relief package, financial assistance would be available to eligible producers to partially offset Federal crop insurance premiums.

"I am tremendously pleased by the Senate's support of this legislation," said Waugh. "I can only hope the House will choose to act on it and support it in the few days we have left in this legislative session."

SB 912 now goes to the House for consideration.