The Coalition to Reduce Spending is pleased to stand with 9 other organizations in signing a coalition letter urging our support of the Harvest Price Subsidy Prohibition Act. Introduced by Sen. Jeff Flake (R-Ariz) and Rep. John Duncan (R-Tenn), this legislation would end the harvest price option (HPO) policy, protecting taxpayers from supporting a truly expensive and wasteful program. The HPO option pays farmers at the standard locked-in price, or at the price at harvest, whichever is higher — leading to payouts that may exceed their expectations from before planting.
As stated in the letter:
“It represents the crop-insurance equivalent of your auto insurer surprising you with a new Cadillac Escalade after you’ve totaled your Toyota Corolla.”
By introducing this legislation, Senator Flake and Representative Duncan are true allies of the taxpayers and we hope that Congress moves efficiently to reform this broken program.
Read more about the program in an op-ed authored by CRS’s Outreach Director here.