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Obama Wants Deeper Crop Insurance Cuts

Friday, June 8, 2012

The New York Times’ Ron Nixon reports that the Obama administration wants to see deeper cuts to crop insurance as the farm bill debate goes forward:

The bill is expected to cost about $969 billion over the next 10 years, but cuts overall spending by $23 billion. The cuts mainly reflect the elimination of direct payments to farm landowners, which cost about $5 billion a year, and cuts about $4.5 billion over 10 years from the food-stamp program. In a statement, the Obama administration said that while it supported the new farm bill, it opposed cuts to the food-stamp program and wanted deeper cuts to farm programs, including crop insurance.

A recent EWG analysis found that last year more than 10,000 individual farming operations received federal crop insurance premium subsidies, ranging from $100,000 to more than $1 million apiece. Some 26 farming operations received subsidies of $1 million or more.


The National Farmers Union, the Center for Rural Affairs, Environmental Working Group, the National Sustainable Agriculture Coalition and Oxfam America have sent a letter to the Senate urging that it “place limits on the federal crop insurance premium subsidies granted to individual farmers, establish income limits for subsidy recipients and require that recipients be actively engaged in farming.”

Go here to read the full letter (PDF).


Table Scraps:

-       The Cato Institute addresses the notion of “Farm Subsidies and Reverse Robin Hood.”

-       The National Review Online says that “farm subsidies are yet another example of the bipartisan cronyism that infects Washington.”

-       Dan Imhoff and Michal Dimock penned an op-ed in this morning’s LA Times, saying, “It's time to reform agriculture, and make Americans healthier.”

-       The NY Times reports that misguided farm subsidies have wreaked havoc and hunger in India.

-       The Montgomery Advertiser covers the debate about peanut subsidies in the 2012 farm bill.

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