Federal Crop Insurance Costs & Subsidies

November 2, 2009 · Posted in Farming 

News Release:

Questions for Ag Secretary Vilsack, Ag Chairman Peterson, New Ag Chairman Lincoln & Former Chair Senator Harkin, relating to Documented Federal Crop Insurance Costs & Subsidies! The Publics Right to Know!

Taxpayers have a right to know how Congress has lavished the American Farmer with Federal Crop Insurance Premium Subsidies totaling $5.410 Billion for the 2009 Crop, paying about 60% of the Farmers Premium! While providing huge “Administrative Margins” and “Underwriting Gains” of $4.647 Billion in Crop Year 2008 for their insurance company friends and Agents! All to reward these titled “Crop Insurance Companies”, who have transferred most of the risk to Taxpayers and the financial gains to themselves! While ignoring the fact that Farmers have enjoyed “Record Crop Prices in 2007, 2008 and 2009″ and could pay their own Premiums!

Today’s high crop prices and hidden political governance, has driven USDA insured crop income exposure from $44 billion in 2005 to $90 billion in 2008. Leaving the Taxpayer with the bill for insuring the 2008 crop, at a stunning $9.233 Billion. Compared to $2.587 Billion for the 2005 crop, all in a period of good farm yields and record Farm income and Farm net worth!

Allowing the “Farmers Premium Subsidies” to jump from $2.337 billion in 2005 to insure 246 million acres, to $5.696 Billion in 2008 to insure 272 million acres. Leaving the first two crops of the five year 2008 Farm Bill, with crop Insurance costs now running above $15 Billion. Which is as high or higher than the present traditional “Direct Crop Subsidy Payments” debated for two years in Congress, which both President Bush and President Obama called for cuts!

All while the House and Senate Ag Committee’s, told Taxpayers they had soundly budgeted the Farm bill. Where $22 Billion is documented as the five year, cost of federal crop insurance for the 2008 Farm Act. Which means, only $7 Billion remains for the next three crops. So what will Congress and the Administration cut, is the question Taxpayers deserve answers on today? All as 47 million American’s have no Health Insurance, while Farmers have Supper Federal Insurance Coverage for their Crops!

Alan Roebke (REB-key) Alexandria Minnesota  See Below: Do you believe sound government policy is to give a farm in Pembina ND $552,114 to farm big? 

Summary/Comparison of two subsidies receive by ND and most American Farmers:

EWG.org shows $222 million in traditional Direct Crop Payment Subsidies in 2007 [est. same 2008]. Compared to CongressionalChange.com/USDA number of $622 million for Crop Insurance Subsides in 2008 or 2.8 times more insurance Subsidies for ND.

One ND county shows recipient of Total Direct Payments or Traditional Subsidies for farms in Pembina County ND are $6.31 million, in Direct Payments in 2007 [2008 will be about the same, 2008 data not released yet by USDA]. These are Crop subsidies based on production history, reported on www.EWG.org for years and are separate and in addition to crop insurance subsidies already listed by www.CongressionalChange.com.  Pembina Counties Crop Insurance Subsidies by comparison for 2008 Crop Insurance subsidies are $19,597,768.  On a per acres basis we est. Crop subsidies for Pembina Co. at about $12/acre and Insurance subsidies at $36/acre for Pembina county.

The largest crop subsidy amount listed by EWG.org for a farm in Pembina County in 2007 was $236,817.  While CongressionalChange.com research shows $522,114 for the largest Crop Insurance subsidy tracked in 2008 but combination data was not available, so some are likely higher yet in some ND county.  Alan Roebke

Crop Year

 

 

 

State Abbr

 

 

 

County Name

 

 

 

Policy Count

 

 

 

Acres Insured

 

 

 

Total $$$ Premium

 

 

 

Subsidy in $$$

 

 

 

2008

 

 

 

ND

 

 

 

Pembina

 

 

 

1

 

 

 

10,572

 

 

 

935,789

 

 

 

552,114

 

 

 

2008

 

 

 

ND

 

 

 

Kidder

 

 

 

1

 

 

 

2,915

 

 

 

821,543

 

 

 

451,849

 

 

 

2008

 

 

 

ND

 

 

 

Golden Valley

 

 

 

1

 

 

 

8,820

 

 

 

584,043

 

 

 

344,589

 

 

 

2008

 

 

 

ND

 

 

 

Bottineau

 

 

 

1

 

 

 

6,758

 

 

 

684,413

 

 

 

376,425

 

 

 

2008

 

 

 

ND

 

 

 

Stutsman

 

 

 

1

 

 

 

6,870

 

 

 

429,705

 

 

 

236,339

 

 

 

2008

 

 

 

ND

 

 

 

Pembina

 

 

 

1

 

 

 

2,132

 

 

 

349,906

 

 

 

223,940

 

 

 

2008

 

 

 

ND

 

 

 

Bottineau

 

 

 

1

 

 

 

6,758

 

 

 

684,413

 

 

 

376,425

 

 

 

2008

 

 

 

ND

 

 

 

Barnes

 

 

 

1

 

 

 

4,829

 

 

 

563,677

 

 

 

310,022

 

 

 

2008

 

 

 

ND

 

 

 

Cass

 

 

 

1

 

 

 

4,964

 

 

 

402,575

 

 

 

237,520

 

 

 

2008

 

 

 

ND

 

 

 

Grand Forks

 

 

 

2

 

 

 

9,552

 

 

 

803,613

 

 

 

507,526

 

 

 

Now see how America’s largest Farm organization views health care reform after their members receive huge Federal Crop Insurance Subsidies!

AFBF Urges House to Oppose Health Care Bill

WASHINGTON, D.C., November 3, 2009 – American Farm Bureau Federation President Bob Stallman today urged all members of the House “to stand with our nation’s farmers and ranchers and oppose H.R. 3962, the Affordable Health Care for America Act.”

In a letter to the House, Stallman said health insurance costs are an ongoing and significant expense for agricultural employers, and health care reform must not unduly burden farm and ranch businesses with costs they can’t afford.

“While tax incentives in the bill are designed to help small employers cover health care expenses, there are no allowances for seasonal workers common to our industry,” Stallman wrote.

“ We are opposed to an employer mandate and view an 8 percent payroll tax imposed for non-coverage as excessive and as burdensome as mandated coverage.

“Farm Bureau believes that health care is primarily the responsibility of individuals, and we are opposed to provisions in the bill that mandate individual coverage. Most farmers and ranchers are self-employed and would already cover themselves if they could afford it.  Passing a mandate accompanied by the threat of a tax for noncompliance only makes the situation worse for people unable to afford coverage in the first place,” Stallman wrote.

Farm Bureau supports private, market-based reforms and is opposed to the creation of a government-operated health insurance program.

“We believe that the creation of an exchange where individuals and businesses can easily compare and purchase privately offered insurance will encourage the competition necessary to bring about cost savings,” Stallman wrote.

See additional Crop Insurance Stories/benefits/rewards/perks/Info from one Ag Press source at www.dtnag.com Links below: 

 
http://www.dtnprogressivefarmer.com/dtnag/common/link.do?symbolicName=/ag/blogs/template1&blogHandle=business&blogEntryId=8a82c0bc23f3b1160124b6113b410961&showCommentsOverride=false
 
http://www.dtnprogressivefarmer.com/dtnag/common/link.do?symbolicName=/ag/blogs/template1&blogHandle=business&blogEntryId=8a82c0bc23f3b116012497b6bbdb07ee
 
http://www.dtnprogressivefarmer.com/dtnag/common/link.do?symbolicName=/ag/blogs/template1&blogHandle=business&blogEntryId=8a82c0bc23f3b116012483bd97ef0709
 
http://www.dtnprogressivefarmer.com/dtnag/common/link.do?symbolicName=/ag/blogs/template1&blogHandle=business&blogEntryId=8a82c0bc23f3b11601243ae44f4a0388
 
http://www.dtnprogressivefarmer.com/dtnag/common/link.do?symbolicName=/ag/blogs/template1&blogHandle=business&blogEntryId=8a82c0bc23f3b116012417135de601cb

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One Response to “Federal Crop Insurance Costs & Subsidies”

  1. Kylie Batt on May 4th, 2010 5:29 am

    Так щас заценим…

    Taxpayers have a right to know how Congress has lavished the American Farmer with Federal Crop Insurance Premium Subsidies totaling $5.410 Billion for the […….

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