“CBO estimates that enacting the bill would increase direct spending for those programs by $5.8 billion over the 2008-2012 period and $17.5 billion over the 2008-2017 period. When combined with estimated spending under CBO’s baseline projections for those programs, enacting H.R. 2419 would bring total spending for those USDA programs to $286 billion over the 2008-2012 period and $614 billion over the 2008-2017 period.”
As I recently wrote to Secretary Vilsak, further cuts to agent’s commissions will make it even more difficult to properly service the growers who depend on Crop Insurance as their safety net. I do not believe that the Department of Agriculture has any conception of what the sales process is all about, much less the service that is required for a crop account of any size. If there were no expenses that the agent has to bear, the cuts still would not make sense because the servicing companies have to survive (and the list is shrinking) or crop insurance will cease to be.
I see this issue no different than the NFIP or basic Farm Subsidies. The Federal Government needs to get OUT of private business, and more particularly the insurance business. “Cuts” DO NOT go far enough. Subsidies should not just be cut, they should be ELIMINATED altogether! Yes, prices may go up on produce and groceries, but that is how a free market is supposed to work. Let the market find it’s own level through the process of supply & demand. Government needs to get out, and let business be business.
Yes, it will be tough on the companies.
They will figure out how much they might lose and then cut the agents commisions to make up for the subsidy cut.
The guy at the bottom gets the cut.
http://www.cbo.gov/ftpdocs/83xx/doc8384/hr2419.pdf
“CBO estimates that enacting the bill would increase direct spending for those programs by $5.8 billion over the 2008-2012 period and $17.5 billion over the 2008-2017 period. When combined with estimated spending under CBO’s baseline projections for those programs, enacting H.R. 2419 would bring total spending for those USDA programs to $286 billion over the 2008-2012 period and $614 billion over the 2008-2017 period.”
By the way this was not a “Democrat” or “Republican” agenda — eighty two senators voted in favor of overriding George Bush’s veto of HR 2419.
As I recently wrote to Secretary Vilsak, further cuts to agent’s commissions will make it even more difficult to properly service the growers who depend on Crop Insurance as their safety net. I do not believe that the Department of Agriculture has any conception of what the sales process is all about, much less the service that is required for a crop account of any size. If there were no expenses that the agent has to bear, the cuts still would not make sense because the servicing companies have to survive (and the list is shrinking) or crop insurance will cease to be.
I see this issue no different than the NFIP or basic Farm Subsidies. The Federal Government needs to get OUT of private business, and more particularly the insurance business. “Cuts” DO NOT go far enough. Subsidies should not just be cut, they should be ELIMINATED altogether! Yes, prices may go up on produce and groceries, but that is how a free market is supposed to work. Let the market find it’s own level through the process of supply & demand. Government needs to get out, and let business be business.
Yes, it will be tough on the companies.
They will figure out how much they might lose and then cut the agents commisions to make up for the subsidy cut.
The guy at the bottom gets the cut.