Nearly 50 organizations representing agricultural interests sent a letter last week to Congressional leaders urging them not cut crop insurance or other farm programs through the omnibus appropriations act.
“The crop insurance program is the lynchpin of the farm safety net and is crucial to the economic security of rural America,” reads the coalition’s letter to Congress. “The crop insurance provision contained in the budget would gut the private sector delivery of the crop insurance program by cutting the target rate of return by 38%. Under the current target rate of return, crop insurance companies have realized negative net returns since 2011. Further reducing the target rate would only drive the industry further into the red.”
The letter also notes the strong commitment of the agriculture community toward balancing the federal budget and that last year’s farm bill that saved taxpayers some $16.6 billion.
“The farm bill is a careful balance of priorities and should not be reopened before its expiration in 2018,” notes the letter. “Additionally, the crop insurance program has contributed more than $12 billion towards reducing government spending since the 2008 Farm Bill, which well-surpasses the funding added to the program in 2014.”
The letter was signed by most major farm organizations including both the American Farm Bureau Federation and the National Farmers Union.