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Policy Plate BLOG

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Crop Insurance Pricier Than Programs It Was Designed To Replace

Thursday, November 14, 2013

EWG’s Brett Lorenzen compares the price of crop insurance to disaster programs it was designed to replace and finds out just how costly crop insurance has become for the taxpayer.

Lorenzen writes:

As the cost of crop insurance has ballooned – from less than $500 million a year in the 1990s to more than $14 billion in 2012 – the program’s most ardent defenders keep repeating the same mantra: Crop insurance is better than budget-busting ad hoc disaster programs.

A close look at the data over the past 40 years shows that nothing could be further from the truth. The reality is that since Congress expanded the crop insurance program in 2000, crop insurance programs have been more costly than the disaster programs they were designed to replace. In fact, when spending is adjusted for inflation, it turns out that crop insurance has cost as much as all disaster spending since 1975. What’s more, nearly one-half of all disaster spending occurred after crop insurance subsidies were greatly increased.

Read the full story on AgMag.

Table Scraps:

The Hill reports on the progress farm bill conferees are making.

Roll Call makes the case for re-linking conservation compliance to crop insurance, saying, “Conservation compliance is a common-sense crop insurance reform measure that has bipartisan support in the House and Senate.”

Agriculture Secretary Tom Vilsack talks to Politico about the importance and urgency of passing a farm bill.

Tweet of the Day: @tomcolicchio Grasp the scale: 48,000,000 Americans struggle w/ #hunger. Imagine emptying 50 largest US cities. Watch: http://bit.ly/HTdpFk  #SNAPAlumni

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