Crop insurance should be a starting point for 2023 farm bill, say farmers

Crop insurance should be a starting point for 2023 farm bill, say farmers

Farmers from Georgia to California told a House Agriculture subcommittee on Wednesday that the foundation of the 2023 farm bill should be the taxpayer-subsidized crop insurance system. They also expressed interest in the creation of a standby disaster relief fund.

Subcommittee chairwoman Rep. Cheri Bustos of Illinois said the hearing would help lay the foundation for the new farm bill. Bustos also said her risk management panel will call hearings on “the dire drought conditions” affecting the West, the northern Plains, and the upper Midwest.

Over the past decade or so, crop insurance has grown into a larger support for agriculture than the traditional farm program. Indemnities for the 2020 crop year total $8.4 billion to date, says the Risk Management Agency. The USDA estimated farm subsidies at $8 billion for fiscal 2020, with land stewardship programs costing about $6 billion. The government pays roughly 62 cents of each $1 in crop insurance premiums.

“We need a very strong safety net,” said Georgia peanut grower Wes Shannon. “Congress must not do anything to undermine [crop insurance].” Illinois farmer Jeff Kirwan called crop insurance “a cornerstone of my operation,” and California vineyard owner Brian Talley said crop insurance was a “fundamental part of the farm safety net.” Minnesota farmer Robert Tate, who is also a crop insurance agent, echoed their views, adding, “Farming is a very risky business, and the stakes keep getting higher.”

House Agriculture chairman David Scott said a month ago that he was working on legislation to create a permanent disaster aid fund at the USDA so aid would be available quickly when it is needed. “This is an idea a lot of farmers in my state can get behind,” said Shannon. Tate said he liked the concept, too. A senior Republican on the committee said a standby disaster fund would have to be complementary to crop insurance and not a rival for him to support it.

To watch a video of the subcommittee hearing, click here.