The key to ending world hunger while protecting the environment is to help small farmers in the developing world increase their productivity and income.
Think U.S. Agriculture Will End World Hunger? Think Again.
It’s a complete misnomer even to call the federal crop insurance program “insurance.” It works nothing like the private insurance market because taxpayers pay about 60 percent of the premiums, all the costs of administering the program and a large share of the claims payouts. Moreover, what crop insurance deems a “loss” bears little resemblance to any actual financial losses a farm family experiences. The cost to growers is so low that over time most can expect to collect far more in payouts than they pay in premiums. In other words, most farmers make money by just by buying a crop insurance policy.
A Lottery That’s a Sure Bet
Drinking water, lakes and rivers in Iowa and across the Corn Belt are in serious trouble because of polluted farm runoff. To tackle the problem, for decades we’ve taken the approach favored by agricultural interests – making federal tax dollars available for conservation practices that curb runoff, encouraging farmers to adopt those practices, then hoping enough of them volunteer to do the right thing.
Voluntary Programs Fail to Clean Up Dirty Water
The cost to taxpayers of providing crop insurance to farmers has more than tripled since 2001, rising from an average of about $3 billion a year in 2001-2003 to more than $10 billion a year in 2012-2014. The increase is largely the result of sharp jumps in the cost of subsidizing both farmers’ premiums and the companies that sell crop insurance.
It Won’t Kill Crop Insurance
The congressional budget deal signed by President Obama in early November includes a cost-saving measure that trims the profits taxpayers guarantee the crop insurance industry. The guaranteed rate of return of these companies would drop from 14.5 percent to 8.9 percent, saving $3 billion over the next 10 years.
Cuts Won’t “Devastate” Crop Insurance