Budget deal cuts crop insurance

Published online: Oct 27, 2015 News
Viewed 825 time(s)

U.S. Ag Leaders are reacting strongly to proposed cuts to crop insurance delivery rates–as part of a federal budget deal that passed Congress Monday night.

National Farmers Union says the deal would reduce the rate of return for “Approved Insurance Providers” through the Standard Reinsurance Agreement, cutting reimbursement rates from 14 percent to just under 9 percent.

NFU President Roger Johnson says more and more crop insurance providers are exiting the public-private system and continued consolidation in that sector would hurt farmers and ranchers.

Agriculture committee members issued statements in strong opposition to any cuts to crop insurance.

Senate Ag Committee Chairman Pat Roberts says farmers and ranchers “have done more than their fair share to reduce government spending already.”

Ranking member Debbie Stabenow of Michigan says such cuts would “undermine the economic certainty that the farm bill provides.”

House Ag Committee Chairman Mike Conaway says the budgets aren’t about saving money, they’re about “eliminating Federal Crop insurance” and the committee rejected such a cut in the 2014 Farm Bill process.

Ranking member Collin Peterson of Minnesota says it is “not appropriate to cut agriculture again” adding, in his words, “The Farm Bill should not be raided.”

Source: www.brownfieldagnews.com