Trump budget proposes massive cut to crop insurance

Trump budget proposes massive cut to crop insurance

Trump budget proposes massive cut to crop insurance President Donald Trump has proposed a 36% cut in the federally subsidized crop insurance program over the next decade, according to a report by Agriculture.com. The Trump cuts are far more sweeping than what was proposed and rejected by lawmakers during the Obama administration.

Crop insurance, the largest of the USDA’s farm-support programs, costs about $8 billion a year, according to Agriculture.com.

The White House also said it would eliminate the USDA’s rural economic development program and streamline conservation programs in an effort to eliminate $46.5 billion in agricultural program costs.

However, crop insurance cuts would account for the largest chunk of savings – $16.2 billion by limiting the government’s share of crop insurance premiums and $11.9 billion by eliminating the harvest price option, according to Agriculture.com. The harvest price option protects farmers against crop losses if the harvest-time price is higher than the price guaranteed at planting time. About 80% of crop insurance policies carry the option, according to Agriculture.com.

Currently, the government pays about 62 cents for every $1 in crop insurance policies. Trump’s plan would limit the total crop insurance subsidy to $40,000 per year and prohibit people with an adjusted gross income of more than $500,000 per year from getting subsidized crop insurance. Together, the two proposals would reduce or eliminate the subsidies for large, wealthy growers, Agriculture.com reported.

Farmers’ groups – whose members voted overwhelmingly for Trump because of his support for corn-based ethanol and campaign vows of regulatory and tax relief – slammed the proposal.

“The president’s proposed budget is an assault on the programs and personnel that provide vital services, research, and a safety net to America’s family farmers, rural residents and consumers,” said Roger Johnson, president of the National Farmers Union.


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7 Comments
  • 5/24/2017 10:18:40 AM
    Ha ha ha ha ha, that'll teach from ripping people off with your high gain off of the people farmers and making the poor not even able to afford nothing but green bread.
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  • Hello... 5/24/2017 10:35:23 AM
    What in the world is the government doing in paying for crop insurance--or any other for that matter? Sounds like a pork project that became institutionalized. Get the government out of it except to make the playing field level and fair. Why in the heck was it not completely eliminated and all those "administrators" laid off? Private enterprise should not be subsidized since that means the government picks the winners and losers and rarely is it the little guy that wins, no matter which party is in power.
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  • Marilyn Poindexter 5/24/2017 10:52:57 AM
    Crop subsidies should have been eliminated from those making over $500,000 a year long ago. Rich people who own farmland but don't do any farming have been milking this one for years. It's about time to end this pork belly. Leave the crop support for the little guys it was intended to help.
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