Wednesday, October 28, 2015

Budget deal would cut popular crop insurance program, farm-state lawmakers object

The deal includes a proposed cut in crop insurance support of $3 billion according to a release from the American Soybean Association. But farm-state lawmakers have fought to protect it, saying it makes the most sense for farmers and for the budget since it pays out when farmers suffer losses. Congress got rid of other types of subsidies in a wide-ranging farm bill a year ago, including payments that went to farmers regardless of crop yield or crop price. While this is unacceptable, it is of particular concern for cotton producers in my district as crop insurance is now the sole means of risk management available. One of the “gotchas” in the Bill is Section 201 that calls for USDA to renegotiate the agreement with private crop insurance companies by December 31, 2016 and then to renegotiate the agreement(s) at least every five years thereafter...more

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