Fixes for Farm Insurance

By National Farmers Union

National Farmers Union (NFU) President Roger Johnson issued the following statement today following a new round of criticisms that federal crop insurance programs chiefly benefit insurance companies and large farmers:

“It is vitally important that farm policy include programs for farmers and ranchers to manage their risks of bad yields and low incomes, and the current system of crop insurance does a good job of that. However, crop insurance, particularly revenue protections, should not be considered a replacement for fair market prices.

“Last summer’s drought was devastating for many farmers around the country, but the damage was not as catastrophic as it was in other bad years, like the 1988 drought, largely because the crop insurance system provided a vitally necessary backstop. Only 55.8 million acres of major crops were covered by crop insurance in 1988, while in 2011, a total of 265.4 million were insured. More farmers carry crop insurance coverage today so that they might be able to stay in business through tough times.

“NFU also believes that crop insurance subsidies, like other safety net programs, should be targeted to family-sized farmers.

“NFU has supported reasonable limits on the amount of crop insurance premium subsidies that farmers can receive. During the Senate consideration of the 2012 Farm Bill, NFU supported an amendment that would have reduced premium subsidies by 15 percent for farms with adjusted gross incomes greater than $750,000. This would have saved $1.2 billion over 10 years. Furthermore, NFU policy supports a limit of $75,000 worth of crop insurance premium subsidies that one farmer can receive in a year.”

National Farmers Union has been working since 1902 to protect and enhance the economic well-being and quality of life for family farmers, ranchers and rural communities through advocating grassroots-driven policy positions adopted by its membership.


Disclaimer: Articles featured on Oregon Report are the creation, responsibility and opinion of the authoring individual or organization which is featured at the top of every article.