USA - Crop insurance for farmers

16.11.2015 346 views
Alan Collins of Collins Knoll Farm in New Hartford bought crop insurance, subsidized by the federal government, for the first time this year. Collins and his partners – two brothers and his father – need a lot of corn and hay to feed the 850 cows they milk. “One way or another, you’re going to get enough money to purchase the feed for the cows for the year or to put up your own feed,” Collins said. The 2014 Farm Bill ended direct payments to farmers and instead established subsidies for farmers to buy crop insurance from private insurers. The change saved the government $23 billion. Some legislators are looking for more savings. A proposed federal budget contained $3 billion in cuts over 10 years to the crop insurance program, but the cuts were eliminated after farm state legislators voiced strong objections. But now, the Assisting Family Farmers through Insurance Reform Act, or the AFFIRM Act, would reinstate those cuts and add another $24 billion. To do that it would cut a popular but optional program that guarantees farmers the replacement costs for their crops, limit the rates of returns crop insurers can get and end subsidies for farms earning more than $250,000. But cutting subsidies could drive farmers out of the program, taking away their protection against major crop losses, and insurers might drop out if crop insurance becomes less profitable, argued Steve Ammerman, spokesman for the New York Farm Bureau. “Just as the government invests in things important to this nation, like infrastructure, crop insurance is an investment into our family farms, rural economy and our national food security,” he said. Rep. Richard Hanna, R-Barneveld, has backed smaller cuts to crop insurance in the past as a sponsor of a 2013 Farm Bill Amendment that would have reduced subsidies by 15 percent for farmers who earn more than $750,000. He supports a program review. “The federal government shouldn’t subsidize the wealthiest farmers on the backs of small family farms, which is why I support means testing for those who receive subsidies,” he said. “There are plenty of small family farms in Upstate New York who are struggling to get by and don’t receive support from this program.” The Collinses already have lost some corn this year after heavy rains in late June prevented planting on same acreage, Collins said. But without subsidies, they might not have bought insurance. “It would be a lot of out-of-pocket expense if it wasn’t subsidized,” he said. “At this point, we’re still in our first year; we’re not sure how were going to make out with it.” Source - http://www.uticaod.com/
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