Aug 22, 2014
Home| Tools| Events| Blogs| Discussions Sign UpLogin

Crop Insurance Cuts: Will You Be Affected?

May 24, 2013
By: Nate Birt, Top Producer Deputy Managing Editor google + 
dollar stack money
  

In a 59-33 vote, Senators have adopted a measure that would limit government subsidies for crop insurance to roughly 20,000 of the wealthiest U.S. farmers, media reports say. The vote comes amid ongoing discussions in Washington over a new five-year farm bill.

The subsidy for the top 1% of farmers—those with gross adjusted incomes higher than $750,000—would fall to 47%, Reuters says. The government now pays 62 cents on every $1 in premiums.  

Not everyone is pleased with the amendment, The Associated Press says. Sen. Debbie Stabenow (D-Mich.), who chairs the Senate Agriculture Committee, says it would cause fewer people to buy crop insurance and jeopardize another provision tying insurance to environmental compliance on farmland. 

Learn more about the 2013 farm bill discussion in this video clip from AgDay:

Advice for Farmers

Jamie Wasemiller, Gulke Group analyst and owner of Wasemiller Insurance Agency, says this vote is just the latest in a long trend of scrutiny of the crop insurance program. "Between the House and the Senate, they really want to take money out of the crop insurance program."

Looking forward, Wasemiller says it is difficult to say what federal programs will be available for farmers. "There’s a good chance that subsidies will not go down for those high-end guys, but we could certainly see this trickle down to all farmers."

His advice is to stay in touch with your senators and voice your opinion on the program. "Don’t be afraid to hound those guys," he says.

Also, he suggests ramping up your knowledge and the overall structure of your crop insurance and marketing plan, so you can weather more risk. "Do the best you can today, so that no matter what the government or the weather does, we’re in a place where we can say we can manage all those scenarios."
 


 

See Comments


 
Log In or Sign Up to comment

COMMENTS

No comments have been posted



Name:

Comments:

Receive the latest news, information and commentary customized for you. Sign up to receive the AgWeb Daily eNewsletter today!.

 
 
Enter Zip Code below to view live local results:
bayer
 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions