Is Crop Insurance on the Budgetary Chopping Block?

March 15, 2017 12:04 PM
 
Is Crop Insurance on the Budgetary Chopping Block?

As the White House wrestles with balancing a bipartisan budget able to be passed by both the House and Senate, some fear cuts to USDA programs will be a high priority. One of the programs in question is the federal crop insurance program.

Crop insurance, which falls under the umbrella of farm bill spending, has cost the government billions of dollars since its introduction in 1938. Earlier this week, letters were sent to the House and Senate Budget Committees, House and Senate Appropriations Committees, USDA Secretary-Designate Sonny Perdue, and Office of Management and Budget Director Mick Mulvaney explaining the need for a federal program. They urged the inclusion of this program in President Trump’s budget.

The letters, signed by more than 60 agriculture groups, say true crop insurance spending under the 2014 farm bill will come in $20 billion under budget. In addition, the letters’ authors say the federal program helps farmers save money.

“Farmers spend $3.5 to $4 billion per year of their own money to purchase insurance from the private sector,” the letters note. “On average, farmers also must incur losses of almost 30% before their insurance coverage pays an indemnity. Crop insurance allows producers to customize their policies to their individual farm and financial needs.”

The letters explain crop insurance is a risk management tool that has replaced the “constant demand for ad hoc disaster assistance.” The groups involved also argue the farm bill should not be reopened or renegotiated until it expires in 2018.

“Farmers and lawmakers agree that crop insurance is a linchpin of the farm safety net and is crucial to the economic security of rural America,” they conclude.

Groups who have signed these letters include: 

American Agri -Women

American Association of Crop Insurers

American Bankers Association

American Farm Bureau Federation

American Farmland Trust

American Insurance Association

American Malting

Barley Association

American Seed Trade Association

American Sesame Growers Association

American Society of Farm Managers and Rural Appraisers

American Soybean Association

American Sugar Alliance

American Sugarbeet Growers Association

Association of Equipment Manufacturers

Association of Fish and Wildlife Agencies

California Association of Winegrape Growers

Corn Refiners Association

Crop Insurance and Reinsurance Bureau

Crop Insurance Professionals Association

Ducks Unlimited

Farm Credit Council

Florida Sugar Cane League

Independent Community Bankers of America

Independent Insurance Agents & Brokers of America

National Association of Mutual Insurance Companies

National Association of Professional Insurance Agents

National Association of State Departments of Agriculture

National Association of Wheat Growers

National Barley Growers Association

National Corn Growers Association

National Cotton Council

National Council of Farmer Cooperatives

National Farmers Union

National Grain and Feed Association

National Oilseed Processors Association

National Peach Council

National Potato Council

National Rural Lenders Association

National Sorghum Producers

National Sunflower Association

National Young Farmers Coalition

Panhandle Peanut Growers Association

Pheasants Forever

Quail Forever

Reinsurance Association of America

Rio Grande Valley Sugar Growers

Rural & Agriculture Council of America

Southern Peanut Farmers Federation

Specialty Crop Farm Bill Alliance

Theodore Roosevelt Conservation Partnership

United Fresh Produce Association

US Apple Association

US Canola Association

US Dry Bean Council

US Rice Producers Association

USA Dry Pea & Lentil Council

USA Rice

Western Peanut Growers Association

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Comments

 
Spell Check

Craig
Kearney, NE
3/18/2017 07:34 AM
 

  You are dead on "Delta 88". Crop insurance is not "for" the farmer. Neither are any subsidies or low interest rates. These are in place so that SPENDING(the life blood of a fiat economy) continues. The government, as we know it now, could not long survive if property taxable assets declined in value. If land and housing declined in value, the bond rating of every city and county would collapse-and so would our fiat economy. So we in Ag get programs such as this which serve to keep us continually chasing our tails economically-virtual debt slaves. In all actuality, we work to keep the government humming along, not for ourselves. However, it is essential for the government to continue the game of fooling us into thinking that we are working for ourselves, something that is far to easily done,...

 
 
David
Anderson, IN
3/20/2017 06:20 PM
 

  A lot of good rants but everybody seems to forget economically we break every rule of business and especially the biggest one. You can't"buy at retail and sell at wholesale " and ever make a real profit. No matter how many generation farm you are, how much ground you "own" or how well your ground yields compared to others. Until you are able to set your own price you just think you are making money. We have to get away from this lifestyle mentality and either make it a business or get out.

 
 
Jim
Elkhart Lake , WI
3/22/2017 10:52 AM
 

  I farm 4000 acres in East central Wisconsin , I do not use crop insurance , and I am not in favor of our government subsidizing crop insurance because the program is greatly abused , my neighbors all have crop insurance and file false claims just to get money from the Government , and if you're one of those who are abusing the system as well you should be ashamed of yourself , and you don't deserve to be a farmer because you are no better than those who are living on food stamps on going , so when you eat lunch today Chew well !! Jim Wi.

 
 

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