During the American Farm Bureau Federation's (AFBF) annual convention, organization director Mary Kay Thatcher indicated the importance of crop insurance is increasing, Farm Futures reports.

She predicted that the next farm bill passed by federal lawmakers will not include direct payments, and that other programs will be cut as well. In their absence, crop insurance will form an increasingly important safety net for the nation's producers in the future.

Thatcher also noted the coming farm bill seems to focus heavily on nutrition, along with higher target prices and crop insurance as central points affecting farmers. AFBF senior economist John Anderson stated the bill is likely to focus on deep losses rather than shallow losses.

Major factors to be determined will include how losses are evaluated. Under a plan suggested by the AFBF, for example, losses would be determined using a three- or five-year price average.

Other groups also have concerns regarding the coming legislation. The Corn Growers Association recently discussed the matter at a meeting, according to ABC affiliate KSFY.

Many of them noted that 2011 was a difficult season, citing extreme weather. Crop insurance provides a way to manage the risk of losses due to such phenomena. Some farmers noted concern due to the potential for federal budget difficulties to negatively impact crop insurance.