An ag economist says the White House’s proposed budget cuts would have a direct impact on farmers.
Purdue University’s David Widmar says especially when factoring in the potential for fewer dollars to subsidize the Federal Crop Insurance program.
“That’s going to result in producers getting less coverage for the same dollar amount they are buying today,” he says. “Or they’re going to have to have an additional expense to buy up to have that same level of coverage.”
He tells Brownfield that is especially difficult as farmers continue to face tough economic conditions.
“That could be a tricky situation to put producers in,” he says. “Especially since this is a risk management tool. It’s going to be a tough decision for producers to make.”
Farm income has declined 56 percent since 2013.
Crop insurance providers have been united in their opposition of the steep cuts to crop insurance in the President’s proposed budget.
Source: brownfieldagnews.com