CFB Sends Letter Supporting Farm Programs During Budget Debates
Every new budget year brings about Presidential budget requests and cuts. This year’s discussion coincides with the passage of the 2018 Farm Bill. That means farm programs are once again fair game for budget slashing. The proposed set of comprehensive cuts is thought to provide a small offset to the spending in defense money that the President wants, while potentially helping to balance the budget. A full detailed budgetary explanation can be found here.
Farm Bureau and other organizations sent a letter requesting Congress to protect the existing monies provided for vital farm programs and the safety net they provide farm families. According to a recent Agri-Pulse article, crop insurance would be cut by $26 billion over 10 years, primarily by eliminating the Harvest Price Option, saving an estimated $22 billion. Another $3 billion would be saved over 10 years by reducing the cap on insurance company underwriting gains to 12 percent of the return on retained premium. A proposed new income eligibility limit of $500,000 a year for producers would trim an additional $641 million.