North Dakota Lawmakers Criticize Proposed $3B Crop Insurance Cut

October 29, 2015

North Dakota’s congressional delegation and others from the state say a proposed $3 billion cut to crop insurance is unacceptable.

A two-year budget deal in Congress would reduce federal subsidies to companies that sell crop insurance to farmers, saving $3 billion over 10 years. The crop insurance program costs more than $9 billion annually.

Farm-state lawmakers have criticized the proposal, saying crop insurance keeps farmers in business and reduces the need for emergency disaster aid.

U.S. Sens. John Hoeven, R-N.D., and Heidi Heitkamp, D-N.D., and Rep. Kevin Cramer, R-N.D., all say the 2014 farm bill strengthened crop insurance and the proposed budget deal threatens that.

“We cannot undermine a program that brings needed support to jobs and families in rural America and which has already seen $12 billion in cuts since 2008,” Heitkamp said. “That isn’t fair, especially at a time when our producers face low prices and economic uncertainty.”

National Farmers Union President Roger Johnson, a former North Dakota farmer and agriculture commissioner, also criticized the budget proposal, saying it is short-sighted and should be rejected.

“Attacks on crop insurance are increasing in frequency,” he said. “As larger segments of the population are further and further removed from agriculture, the value of this safety net program is less and less understood.”

Johnson said the cut would “accelerate the consolidation of the crop insurance sector.”

Related:

Topics Legislation Agribusiness

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