Legislation being introduced in both the House and the Senate is proposing cuts to federal crop insurance that are greater than what was included in the congressional budget agreement.
The Assisting Family Farmers through Insurance Reform Act (AFFIRM) would cut $19 billion over 10 years by eliminating the Harvest Price Option on revenue policies. HPO is a crop revenue insurance option that allows farmers to purchase policies to compensate for lost production at the higher of the price projected – either just before planting or the price at harvest.
Other savings would come from cutting returns to crop insurance companies and agents in addition to cutting farmers’ premium subsidies.
Representative Jim Sensenbrenner of Wisconsin, one of the bills cosponsors, says the legislation makes sensible changes to the crop insurance program to reduce unnecessary subsidies to the nation’s largest and most profitable farms and agribusinesses.
The bill’s other cosponsor is Democrat Ron Kind of Wisconsin. Arizona Sen. Jeff Flake is introducing the bill into the Senate.
Source: www.brownfieldagnews.com