Crop Insurance Reform

If you are a farmer, or you live in rural America, you've likely heard about or used government subsidized crop insurance. If you're not familiar with the issue, we'll get you up to speed in a hurry.

Crop insurance and the need for reform came to our attention over 10 years ago. Farmers across the Great Plains and Midwest began to report that federally subsidized crop insurance was putting them at a disadvantage. Meanwhile, programs that help strengthen opportuntiies for small and mid-sized family farms and ranches have witnessed funding cuts.

We believe crop insurance is an important tool to help farmers mitigate risk. But it can be much better! You can help to make sure it also serves beginning, small, and mid-size farms.

Crop Insurance Reform Notes

 

Impact of Crop Insurance on Land Values

The Center for Rural Affairs along with Mike Duffy, Professor Emeritus of Economics, Iowa State University, will release a report that explores the impact subsidized crop insurance places on land values. 

Explanation of Crop Insurance Hidden Benefits

During the last farm bill debate we heard Congressional leaders say, farmers don’t get a check, they get a bill for their crop insurance.
 
While that statement may be true, it’s also true that crop insurance is heavily subsidized, providing unlimited premium subsidies to the nation’s largest and wealthiest farms on every acre, every year, regardless of prices, production or farm profitability.
 
 We created a mock “explanation of benefits” to demonstrate the largess.
 

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What is crop insurance, really?

A lot of you want to see more family farms and ranches and more businesses in our rural communities. You also care about healthy food and clean water. But if you’re not a farmer, and I say the words “crop insurance,” those words might just go in one ear and out the other. Well, guess what: crop insurance has everything to do with the viability of family farms, the health of rural communities, production of healthy food and stewardship of clean water.

Will Congress reform federal crop insurance?

For over three decades, the Center for Rural Affairs has worked alongside farm and rural organizations, U.S. Senators and U.S. Representatives to reform federal farm subsidies. The impetus for those reform efforts has been the negative impacts unlimited farm subsidies have on beginning farmers, and on small and mid-sized family farms. We argue that when subsidies are unlimited in nature — with no cap on the amount of subsidies that the largest farms can receive — they provide the nation’s largest and wealthiest farms with additional financial resources to bid up land costs and drive their smaller neighbors out of farming.