The White House today released its detailed proposed budget for Fiscal Year 2019. The budget proposal includes the following:
- Cutting the federal crop insurance program by $22.4 billion over the 2019-2028 period
- Targeting program subsidies to those producers that have an Adjusted Gross Income of $500,000 or less for a savings of $3 billion over the 2019-2028 period
- Reducing underwriting subsidies to participating insurance companies by placing a cap on underwriting gains at 12 percent or $3 billion over the 2019-2028 period
The following is a statement from the National Corn Growers Association:
“The time and place to debate farm bill programs is during the farm bill reauthorization, not the annual budget process. The farm bill represents a 5-year commitment to America’s farmers and ranchers, which Congress made in 2014, and is preparing to reauthorize again this year. We are counting on Congress to honor that commitment, and reject cuts that would be harmful for rural America. These proposed budget cuts would simultaneously hurt farmers’ ability to manage risk and grow their revenues by undermining the financial wellbeing of the companies upon which they depend.
“Targeting the federal crop insurance program is extremely shortsighted. These cuts would reduce premium subsidies for policies with harvest price coverage by 15 percentage points. It also reduces premium subsidies for policies without harvest price coverage by 10 percentage points.
“This is particularly harmful during an extended period of low commodity prices. NCGA members consistently tell us that crop insurance is their most important risk management tool. This public-private partnership helps farmers manage their risk, and it saves taxpayers money in the long run by reducing reliance on ad hoc disaster assistance.
“MAP and FMD are successful programs that build global demand for U.S. farm products, and increase income and jobs in our communities. NCGA is pleased to see that some funding for these crucial programs has been included.
“MAP and FMD create an average return on investment of $28 for every $1 spent, and account for 15 percent of all U.S. ag export revenue—making them a solid investment. At a time when the farm economy is struggling, we should be investing more in these programs that open markets and increase demand, not less.
“We urge Congress to honor the commitment they made to rural America when they reauthorized the farm bill in 2014. We hope to engage in a meaningful dialogue about how we can support America’s farmers, ranchers, and rural communities through these challenging economic times.”
NCGA is taking a series of actions to do our part to help contain the spread of the coronavirus (COVID-19) and the economic fallout it is creating for corn farmers and our customers. Short term, this means instituting policies to protect the health and safety of our stakeholders and the broader communities we serve. Long term, we’re focused on creating solutions to help corn farmers and our customers recover from the financial impacts of this crisis.
CommonGround is a group of farmers connecting with consumers through conversations about science and research and personal stories about food and misinformation surrounding farming. Supported by the NCGA and state corn organizations.
The Soil Health Partnership (SHP) is a farmer-led initiative that fosters transformation in agriculture through improved soil health. Administered by NCGA the partnership has more than 220 working farms enrolled in 16 states. SHP’s mission is to utilize science and data to partner with farmers who are adopting conservation agricultural practices that improve the economic and environmental sustainability of the farm.