Release: Updated NSAC Report Illustrates Minimal Impact of Crop Insurance Subsidy Caps on Farms


Release: Updated NSAC Report Illustrates Minimal Impact of Crop Insurance Subsidy Caps on Farms

October 6, 2022


For Immediate Release

Contact: Laura Zaks

National Sustainable Agriculture Coalition

lzaks@sustainableagriculture.internet 

Tel. 347.563.6408

Release: Updated NSAC Report Illustrates Minimal Impact of Crop Insurance Subsidy Caps on Farms

Addendum Bolsters Original Report Projecting Billions Saved 

Washington, DC, October 6, 2022 –– Today, the National Sustainable Agriculture Coalition (NSAC) printed an up to date model of a particular report projecting billions in taxpayer financial savings over 10 years if modest fee caps are instituted on backed reductions for farmers who buy crop insurance coverage. The up to date report consists of an addendum that options a number of projections demonstrating the actual affect of fee caps outlined within the authentic report: An Economic Analysis of Payment Caps on Crop Insurance Subsidies, first printed in July 2022. 

“A federally backed farm security internet is a vital function of agriculture’s danger administration technique,” stated NSAC Policy Specialist Billy Hackett. “But common sense caps on in any other case limitless funds to non-public insurance coverage firms and the biggest industrial farms are essential to degree the taking part in area for household farms, promote pure useful resource stewardship, and safe a greater deal for American taxpayers.”

The addendum illustrates the minimal impacts that introducing a easy fee cap of $50,000 or a scaling restrict based mostly on worth of manufacturing would have on farms. The instance farms in Iowa, Montana, California, Arkansas, and Texas signify completely different ways in which subsidies obtained would – or wouldn’t – change for numerous agriculture operations, together with corn and soybean, wheat, rice, cotton, and blended farms of various sizes and protection ranges.

The report was written by Dr. Eric J. Belasco, a professor of agricultural economics at Montana State University who specializes within the research of federal agricultural assist applications and danger administration. 

“While these examples illustrate the affect of cap eventualities on very giant farms, it is usually abundantly clear that small and mid-sized farms are hardly ever impacted,” writes Belasco. “It can also be proven that whereas very giant farms are impacted by some cap eventualities, they nonetheless obtain substantial subsidies in these eventualities.”

Less than three p.c of American farms on common could be impacted in any respect by any of the proposals included within the authentic report. 

Read the full report right here.

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About the National Sustainable Agriculture Coalition (NSAC)

The National Sustainable Agriculture Coalition is a grassroots alliance that advocates for federal coverage reform supporting the long-term social, financial, and environmental sustainability of agriculture, pure assets, and rural communities. Learn extra and become involved at: https://sustainableagriculture.internet


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Commodity, Crop Insurance & Credit Programs, Press Releases