Crop Insurance Cuts

 As part of President Obama’s budget proposal for 2014 the federal crop insurance program would take a $7.4 billion dollar reduction hit. No surprise there. Agriculture has done well over the last few years in spite of natural and not so natural challenges. This makes it a natural target for “the powers that be” when it comes to trying to find ways to “rob Peter to pay Paul”. The Obama administration says that because the value of livestock and crop production is at an all time high many farm programs can no longer be justified. This isn’t a new trend. Democrat and Republican Administrations alike have often proposed savings by cutting farm programs. Congress generally avoids taking too deep of cuts to ag programs, though this year there has been more of a congressional surge to eliminate some subsidies paid directly to farmers as Congress struggles to pass a five year farm bill. The American Soybean Association and state soybean groups have spoken out harshly against the proposed cuts to crop insurance saying that, “Crop insurance paid out this year, but it hasn’t always. If you go back the last ten years, farmers have more than paid their fair share”.