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Ag Programs Could Suffer Severe Budget Cuts

March 22, 2012
 

 

A few ag programs could be on the chopping block if a new budget proposal currently before the House Budget Committee passes. Direct payments and crop insurance would compose the bulk of the proposed $33.2 billion in cuts to agricultural programs.
 
Cuts to crop insurance, proposed by chairman Paul Ryan (R-Wis.) have members of the American Soybean Association (ASA) concerned.
 
"The cuts that Chairman Ryan proposes, however, are significantly higher than those agreed upon by House and Senate Agriculture Committee leadership during the Supercommittee process last fall, and that concerns us," says Danny Murphy, ASA First Vice President. "Especially worrisome is the Chairman’s emphasis on the federal crop insurance program as an area for reduction. Crop insurance serves as the main safety net for America’s farmers, and its integrity must be protected."
 
Murphy says that soybean producers are willing to take cuts to programs that affect them so long as the cuts are proportional to cuts in other industries. The proposal does recognize developments in domestic energy sources but Murphy says that the Chairman needs to keep in mind the success of the American biodiesel industry, which he says is responsible for the creation of 50,000 jobs last year and produced 1.1 billion gallons of biodiesel.
 
"The biodiesel industry creates jobs, reduces greenhouse gas emissions and blosters our energy security, all while displaced imported diesel with clean, American-made fuel," Murphy says.
 
The proposed budget, also includes a redesign of the Supplemental Nutrition Assistance Program (SNAP), previously known as food stamps including a $123 billion cut from the program to be shifted to state run programs.
 
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COMMENTS (4 Comments)

splined
It truly is a shame if congress is allowed to continue its war against small family farmers with the highly financially discriminatory crop insurance scheme. This scheme which guarantees the greatest probability of the greatest income to the largest farmers creates impossible financial competition for most small farmers. In other words congress gives so much more to the haves that those with less are unable to have any chance of competing in the farm business. Crony capitalism is the term that describes federal crop insurance. Federal crop insurance is a government scheme that uses the taxpayers' contributions and government resources to disproportionately guarantee greater wealth to those with the greatest probability of the greatest wealth. In exchange for highly subsidized premiums the wealthiest farmers or those with the greatest probability of the greatest wealth (generally those with the most acres controlled or owned) receive nearly bullet proof investment and profit insurance worth many times what smaller farmers can obtain. (Fair market values of investment /profit guarantee received.) In short, government is guaranteeing the most to those who have the most. This granting of overwhelming prosperity in exchange for highly subsidized premiums allows the largest and already most financially competitive farm operators the ability to make sure most smaller farmers can see the lights of the uncoming train financially.

10:46 PM Apr 8th
 
splined
It truly is a shame if congress is allowed to continue its war against small family farmers with the highly financially discriminatory crop insurance scheme. This scheme which guarantees the greatest probability of the greatest income to the largest farmers creates impossible financial competition for most small farmers. In other words congress gives so much more to the haves that those with less are unable to have any chance of competing in the farm business. Crony capitalism is the term that describes federal crop insurance. Federal crop insurance is a government scheme that uses the taxpayers' contributions and government resources to disproportionately guarantee greater wealth to those with the greatest probability of the greatest wealth. In exchange for highly subsidized premiums the wealthiest farmers or those with the greatest probability of the greatest wealth (generally those with the most acres controlled or owned) receive nearly bullet proof investment and profit insurance worth many times what smaller farmers can obtain. (Fair market values of investment /profit guarantee received.) In short, government is guaranteeing the most to those who have the most. This granting of overwhelming prosperity in exchange for highly subsidized premiums allows the largest and already most financially competitive farm operators the ability to make sure most smaller farmers can see the lights of the uncoming train financially.

10:46 PM Apr 8th
 
swmnag - Marshall, MN
I can save some money on crop insurance and help meet the budget. Put a declining subsidy in for the number of acres and a cap that no insurance can be in force outside a predetermined number of acres. For the heart of the cornbelt, a couple of good numbers to start with are a declining subsidy that dissappears at 1250 acres per SSN and actively engaged and then farmers pay the full amount until 2000 acres per SSN and actively engaged, and then no more crop insurance. That would drop the crop insurance bill significantly, at least it would until the acres shift to different farms. I don't think too many would want to risk $1000/A investment with no gty of insurance on it.
10:34 AM Mar 22nd
 
swmnag - Marshall, MN
I can save some money on crop insurance and help meet the budget. Put a declining subsidy in for the number of acres and a cap that no insurance can be in force outside a predetermined number of acres. For the heart of the cornbelt, a couple of good numbers to start with are a declining subsidy that dissappears at 1250 acres per SSN and actively engaged and then farmers pay the full amount until 2000 acres per SSN and actively engaged, and then no more crop insurance. That would drop the crop insurance bill significantly, at least it would until the acres shift to different farms. I don't think too many would want to risk $1000/A investment with no gty of insurance on it.
10:34 AM Mar 22nd
 



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