Today, the Coalition to Reduce Spending was proud to join a nonpartisan group of organizations urging Congress to reform one of the most wasteful aspects of the Farm Bill program: Crop insurance.
Introduced by Representatives Ron Kind (D-WI) and Jim Sensenbrenner (R-WI) in the House, and Senators Jeff Flake (R-AZ) and Jeanne Shaheen (D-NH) in the Senate, the AFFIRM Act places strong, sensible taxpayer protections on our nation’s unaccountable and expensive federal crop insurance program.
With the demise of direct payments, crop insurance is now the largest, most important support for farms. Unfortunately, the program’s expansion puts the taxpayer at risk and distorts agriculture markets. Currently, the federal government subsidizes crop insurance premiums by 62% on average, regardless of whether the farm is a small, family operation or a multi-million dollar agribusiness. Premium support payments are unlimited, resulting in a handful of farms receiving over $1 million in federal support while 80% of farms receive $5,000 or less. Subsidizing farms regardless of size or income skews the playing field toward large agri-business, driving up land costs and encouraging those with the means to over-insure and lock in high revenues.
Read the full letter here.