Bill would reform federal crop insurance

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Legislation recently introduced in the U.S. Senate would reform the federal government’s crop insurance program.

The U.S. Department of Agriculture operates the program intended to protect farmers from losses due to lower-than-expected crop prices or low crop yields. In recent years, program costs have risen dramatically.

The Assisting Family Farmers through Insurance Reform Measures Act would save $34.7 billion over 10 years, according to the Congressional Budget Office.

The bill has six goals. It would limit federal crop insurance subsidies to $40,000 annually per farmer; eliminate crop insurance premium subsidies for individuals with an adjusted gross income of more than $250,000; reduce government subsidy of crop insurance company administrative and operating costs; lower insurer profits guaranteed by the government to 8.9 percent; eliminate subsidies for Harvest Price Option insurance policies.; and increase transparency in government spending.

“There is no good reason for taxpayers to subsidize crop insurance premiums for massive agriculture operations,” Sen. Pat Toomey (R-PA), who introduced the bill, said. “This is nothing more than corporate welfare. Enacting these bipartisan reforms would save billions in taxpayer dollars and put our country on a more sustainable fiscal path.”

Sen. Jeanne Shaheen (D-NH) co-introduced the bill.