Federal legislators representing various agriculture committees in Congress have rejected the cuts to crop insurance President Obama unveiled in his budget plan this week. The plan looks to cut $8 billion in funding for crop insurance throughout the country. Legislators claim that this would be a major blow to many farmers, especially those in areas that are prone to seeing natural disasters. The Obama administration is keen to make cuts to crop insurance because it claims that some farmers are abusing the system, as they will be paid for their…
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Federal crop insurance program hinders organic farm growth
Though there has been an increase in consumer demand for consumer foods, some producers are finding that the federal crop insurance program – which was created to assist farmers – is hindering their ability to expand. This, according to Matt McLean, the founder of Uncle Matt’s Organic Inc, which has become the largest organic citrus producer in Florida, after having started in 1999 with only 5 acres of oranges. The reason that McLean and other farmers are making this claim is that organic producers are required to pay a surcharge…
Read MoreImportance of crop insurance highlighted at the 26th Annual Corn Growers Association meeting
As farmers from all over the country convened over the weekend to attend the 26th Annual Corn Growers Association in Sioux Falls, South Dakota, crop insurance was on everyone’s mind. With 2011 being recognized as a record breaking year in terms of natural disasters, and the persistent problems spawned from a turbulent climate, farmers throughout the country have been facing significant difficulties with keeping their crops alive. As crops are lost, farmers lose their ability to make a living. Most farmers receive money from the government, but this money is…
Read MoreUnderstanding the insurance overlaps among crop, ACRE, and SURE coverage
A report has been released by economists from the United States Department of Agriculture (USDA) on the topic of overlaps by the various farm safety net programs, investigating the possibility for fraud by those crossovers, but determined that there was very little evidence of its occurrence. However, the hope is that the new Farm Bill will divide the programs in a way that will minimize the potential of overlaps in the future. One of the best examples of farm program complexity is ACRE. The low participation in the program is…
Read MoreNew subsidy for farmers has backing from lawmakers in the farm states
Lawmakers in the farm states are making efforts to form a brand new type of subsidy that would provide farmers with protection when they face a drop in revenue. This program is unprecedented and would provide farmers with billions of dollars in future support to farmers who are currently experiencing record breaking high prices for their crops. This free insurance subsidy would give farmers with the coverage they need for “shallow crop losses” that are incurred before their paid insurance policies become effective and has the support of soybean and…
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