ADVOCACY a great way to better understand the political process and how your association is working behind the scenes to protect the independent agency channel.
DAV VOGEL, HALEY MARSICEK, BRYAN SCHMITZ, AND JORDAN CROW
ADVOCATING FOR TAX REFORM
One of the top concerns we discussed with legislators was tax reform. Much of the 2017 Tax Cuts and Jobs Act( TCJA) is set to expire at the end of 2025, which would result in significant tax increases for many small businesses. The Big“ I” strongly supports the Main Street Tax Certainty Act of 2025( S. 213 / H. R. 703), which would make permanent the 20 % small business income deduction under Section 199A. This deduction is especially critical for agencies, where approximately 86 % of agencies are structured as pass-through entities. Without congressional action, our members would face steep tax hikes, putting them at a competitive disadvantage compared to C-corporations, which will continue to benefit from the permanently lowered corporate tax rate established by the TCJA. The Big“ I” also urged Congress to protect the tax-free status of employersponsored health insurance, warning that any move to eliminate or cap this benefit would drive up costs and reduce access for nearly 180 million Americans. In addition, we advocated for preserving the taxexempt status of 501( c) trade associations and opposed efforts to subject royalty income to unrelated business income tax( UBIT), emphasizing that such revenue is vital for providing member services and ensuring financial sustainability. As a 501( c) 6 organization, this hits close to home for KAIA.
PROTECTING CROP INSURANCE
Another major focus of our advocacy efforts was protecting the Federal Crop Insurance Program( FCIP), which plays vital role in supporting Kansas agriculture. Led by Bryan Schmitz, who is a member of the Big“ I” Crop Insurance Subcommittee, we emphasized the importance of safeguarding the FCIP from harmful funding cuts or regulatory changes that could disrupt its effectiveness. In Kansas, independent agents write over $ 1B in multi-peril crop written premiums which represents the largest insurance line for independent agents.
Without the stability of the FCIP, many farmers would struggle to recover from these unpredictable events, jeopardizing their livelihoods and the security of the food supply. The FCIP not only helps ensure a secure and resilient agricultural economy, but it also reduces the need for emergency federal disaster relief, making it a fiscally responsible approach to risk management. In Kansas, independent agents write over $ 1B in multi-peril crop written premiums which represents the largest insurance line for independent agents. KAIA members play a critical role in the program’ s success by helping farmers navigate complex policy options, select the most appropriate coverage, and handle claims efficiently. As Congress drafts the next Farm Bill and appropriations legislation for FY2026, the Big“ I” called on lawmakers to protect and strengthen the private-sector delivery model of crop insurance, which has proven to be both effective and efficient.
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MAY / JUNE 2025
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