Is crop insurance worsening the United States food crisis?

Crop Insurance - Food Cost
Treasury Department investigates in...
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The price of nearly everything at the grocery store is on the rise and coverage might be exacerbating it. Federally subsidized crop insurance programs have incentives built in that can, in certain circumstances, make it more profitable for farmers to abandon their attempts to grow than it is to plant a field of food. The weather conditions this year are playing into those circumstances, further risking the US food supply. Unusually cold and wet weather in many Midwestern states, such as Minnesota, have meant that only a small percentage of…

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Private crop insurance companies see shrinking returns

private Crop Insurance

These insurers have experienced a notable drop in their returns since the SRA was renegotiated in 2010. Private crop insurance companies are experiencing a notable downward trend in their return figures. This has been a consistent situation since the Standard Reinsurance Agreement (SRA) was renegotiated in 2010. The SRA renegotiation between insurers and the federal government marked a significant change in the direction of that business. The change in returns have also aligned smoothly with the Risk Management Agency’s benchmarks. The U.S. Department of Agriculture’s Risk Management Agency laid out…

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President Obama proposes cuts to crop insurance

us crop insurance program

2017 budget plan aims to cut $18 billion in funding for the Department of Agriculture President Barack Obama has proposed a budget plan for 2017 that could have a major impact on farmers throughout the country. These farmers rely on crop insurance to protect them from the financial implications of natural disasters and underproduction, but this form of coverage has become a financial burden on the country. Obama has proposed to cut some $18 billion in funding for crop coverage offered through the Department of Agriculture over the next 10…

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Crop insurance price guarantees to drop

us crop insurance program

Grain analysts are expecting those guarantees to fall yet again for corn, soybeans, and spring wheat, this year. According to recent predictions from grain analysts, the crop insurance price guarantees for American spring wheat, corn, and soybeans is going to fall by another 10 percent, this year, based on an analysis of February futures settlement prices. The USDA provides a subsidy for a minimum of two thirds of the insurance premiums paid by farmers. The crop insurance program, itself, has oversight by the USDA Risk Management Agency (RMA), which also…

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NFBF seeks action on crop insurance provision

crop insurance program

NFBF petitions federal agency to implement insurance provision The Nebraska Farm Bureau Federation (NFBF) is petitioning the U.S. Department of Agriculture to implement a new crop insurance provision that was introduced in the 2014 Farm Bill. The provision may help farmers in Nebraska recover from the loss of their crops due to powerful natural disasters that occurred during the spring of this year. Nebraska was struck by several hailstorms and tornadoes that caused significant agricultural damage, leaving many farmers in a precarious financial situation. 2014 is proving difficult for the…

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Crop insurance receives more legislative attention in the US

Corn Belt - GMO Crop Insurance program

Legislators again consider crop insurance reforms Crop insurance in the U.S. is often criticized as being a major financial drain on the federal government. This type of insurance coverage is part of the federal government’s safety net for farmers, which is meant to provide farmers with financial support in the event of natural disasters and to ensure that they have an incentive to produce crops. The country’s crop insurance program has become the target for those seeking reform, with some federal lawmakers suggesting that the program encourages farmers to adopt…

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Crop insurance subsidy limits applauded by reformers

us crop insurance program

Those in favor or restrictions of this nature gave their praise to a U.S. House of Representatives vote. Reformers for the crop insurance subsidy gave their approval to a vote that was held by the U.S. House of Representatives that would require the wealthier growers to have to pay more in order to take part in the federally subsidized program. This is also the first time that an eligibility limit has been placed on this highly expensive program. The federal crop insurance program is already costing the country $9 billion…

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