There is a study that suggests lowering the subsidy rate for high income farm operations could save taxpayers hundreds of millions of dollars each year.
There is a study that suggests lowering the subsidy rate for high income farm operations could save taxpayers hundreds of millions of dollars each year.
Transcript
Subsidies for crop insurance cost over $17 Billion for the 2022 crop year according to federal government statistics. But there is a study that suggests lowering the subsidy rate for high income farm operations could save taxpayers hundreds of millions of dollars each year.
The Government Accountability Office, an independent agency within the federal government, released a study this week that analyzed the costs of crop insurance subsidies to farmers and the payment of administrative fees to insurance companies that sell the policies. The report found that the top one percent of crop insurance policy holders received nearly 15 percent of the payouts made in 2022, coming in at a little over $2.5 billion.
Taxpayers subsidize an average of 62 cents for each dollar of crop insurance purchased. Unlike other agricultural programs, there are no income limits to access the insurance subsidy.
The report also estimated that reducing the subsidy for the operations in the top 1 percent could save over $15 million annually and have little effect on the actuarial soundness of the program.
Proposals to place income limits on insurance subsidies face a skeptical audience in Congress.
Sen. Charles Grassley, R - IA: “I feel that we shouldn't take any chances with hurting crop insurance, whether it's for big farmers or small farmers, because I'm hearing the same message from any size farmer we have in Iowa.”
For Market to Market, I’m Peter Tubbs.
Watch More
The White House adds detail to the new trade deal, while China dodges the details. The drought continues to hammer the south and west. We’ll look at the ticking clock facing the dairy industry. And, commodity market analysis with Sue Martin.
The White House announced this week that President Trump has secured “historic trade deals with China” after his visit last week with President Xi.
This week, the East Coast received an early blast of summer, with highs in Philadelphia reaching into the 90’s with the heatwave expected to continue through the weekend.
Sue Martin talks interest rates, oil, corn, soybeans, hogs, cattle and packing plants in our Market Plus.
Sue Martin discusses the latest trade deal with China along with corn, soybeans, cattle and hogs in our Market Analysis.
Agriculture gets sorted to the side during high-stakes negotiations with China. The yeas have it - E15 is approved in the House but not without some pushback. Revving up fans, drivers, and rural communities on the dirt track. And, commodity market analysis with Naomi Blohm.