It's not something on the radar of a lot of farmers and it would never get classified as a sexy topic but USDA is in the midst of renegotiating its Standard Reinsurance Agreement with the crop insurance industry and now is starting to get some push back over a USDA proposal that would reduce the industry's administrative and operating reimbursements, and premium subsidies by $4 billion over the next five years.

Now more U.S. senators are weighing in and standing with the crop-insurance industry.

Senate Agriculture Committee Chairman Blanche Lincoln, D-Ark., and Committee Ranking Member Saxby Chambliss, R-Ga., along with 24 other senators sent a letter to USDA's Risk Management Agency on Wednesday asking the department to "refrain from making deep cuts to the federal crop insurance program," citing that a vibrant crop-insurance industry is vital to the agricultural economy.

Congress negotiated to reduce the projected costs of crop insurance by $5.6 billion from 2008-2017, the senators noted in their letter. That cut in the farm bill should be factored into USDA's work on the reinsurance agreement, the senators state. "Even though your agency was authorized in the farm bill to consider alternative reimbursement mechanisms in the SRAand the companies expected to face some revenue reduction from the process, the depth of these proposed cuts came as quite a shock, and combined with the cuts from the farm bill could force some companies out of business."

Senators stated they are worried about the ability to serve farmers, as well as possible job losses that could occur with potential funding cuts.

In drafting its proposed contract in December USDA pushed to cut operating and administrative expenses, which now are pegged to premium prices and have risen with the increase in commodity prices. USDA officials argue that those costs have gone up dramatically in recent years even though the actual cost of delivering services has not changed. USDA also wants the industry profits to come down closer to profits in other lines of crop insurance, or "a reasonable rate of return."

The USDA proposed reduction also is about twice as much as laid out last year in President Obama's budget proposal.

As the senators sent out their letter, a Washington public-relations firm acting on behalf of the crop-insurance industry also sent out a news release as the crop-insurance industry offered a counter-proposal to USDA. There are effectively 15 companies impacted by the contract talks.

“These are pretty dramatic cuts based on little or no supporting research and data,” said Bob Parkerson, President of National Crop Insurance Services. “The industry supports thinking about change, but it has to make sense for the Government, industry and producers.”

USDA wants to have an agreement in place by April. So it's a major debate with billions of dollars on the line for crop insurers, taxpayers and farmers.

I can be found on Twitter at chrisclaytonDTN.