Groups Ask Senate to Limit Crop Insurance Subsidies to Largest Farms
June 7th, 2012
On Thursday, June 7, 2012, Center for Rural Affairs, Environmental Working Group, National Farmers Union, National Sustainable Agriculture Coalition, and Oxfam America sent a letter to the Senate regarding federal crop insurance premium subsidies in the 2012 Farm Bill.
The federal government currently pays an average of over 60% of crop insurance premiums, and projected cost to taxpayers for crop insurance under the proposed new farm bill are expected to be more than double the cost of commodity payments.
The organizations asked for provisions in the farm bill that would limit federal crop insurance premium subsidies to per farm, establish income limits above which recipients would not be eligible for full subsidies, and require subsidy recipients to be actively engaged in farming. These measures would not deny farmers access to risk protection or cap indemnity payments in the case of farm losses, but would reduce subsidies for the payment of premiums.
Representing a diverse group of farm, rural, international and environmental organizations, the signers urged Senators to create a “responsible policy that directs risk management assistance to farmers who need it and caps it at levels that do not subsidize the largest farms to drive out small, mid-size and beginning farmers.”
The full text of the letter can be read here.