Crop Insurance Premium Subsidies Reduction in President's Crosshairs
CliftonLarsonAllen Principle and Farm CPA Today Blogger Paul Neiffer shares what the President proposes to drop subsides that are being paid to farmers in crop insurance that are currently at 57 percent of bottom line crop insurance premium — the president proposes cutting that back to about 43 percent over the next several years.
Neiffer: “This would be about a $1 billion — slightly above a $1 billion — haircut on the premium subsidies beginning in 2016. When it is fully phased in, about in 2018 it would be about $1.6 billion of reductions which is about a 27 percent reduction in crop insurance premium subsidies.”
Neiffer continues with how Congress may react the proposed premium subsidies budget cuts.
Neiffer: “We are fairly certain that Congress will not go along with this but I know with the change with the Senate to Republican-controlled — there are certain members in both the House and the Senate that are actually in favor of this. They are probably on the conservative side. They are not liberal Democrats. They are actually conservative Republicans that think that crop insurance subsidies are too much and too favorable for farmers right now. But we shall see.”