President’s Deficit Reduction Plan Makes Further Cuts to Crop Insurance
Big “I” opposes administration’s proposed $8 billion in additional cuts to the FCIP.
Last Monday, President Barack Obama unveiled his deficit reduction plan entitled “Living Within Our Means and Investing in the Future.” This proposal, once again, points a laser at the Federal Crop Insurance Program (FCIP) as an agriculture policy program for additional cuts of $8 billion over a 10-year period.
The 2008 Farm Bill coupled with the 2011 Standard Reinsurance Agreement (SRA) have already slashed the FCIP by $10 billion in just four years. Many members of Congress and industry groups agree that the crop insurance program has already been cut enough in the name of deficit reduction. It is important to now give the program some time to readjust to the recent huge cuts and changes to both the policy and implementation of the crop program.
The administration’s attempt to “streamline and modernize” the FCIP makes cut-to-the-bone reductions to subsidies for crop insurance, which subsequently raises the premium price for farmers. When asked, farmers have consistently stressed that ensuring a strong safety net is vital to the future of the nation's farming communities. Therefore, the Big “I” and many others organizations that support American agriculture find it counterintuitive to continuously slash a program that has worked so well for farmers and ranchers for many years.
As the budget talks continue, it is important that this proposal by the President not act as a springboard for the Super Committee—that was recently assigned the task of reducing federal budget deficits by at least $1.2 trillion—as their deficit reduction plan begins to take shape. The Big “I” will continue to remind Congress that disproportionate reductions to the FCIP have already taken place. With more than 18,000 crop agents across the country aiding farmers in making informed decisions about their livelihood, any additional cuts to the FCIP will drastically alter the efficient and effective safety net that has helped production agriculture prosper.
Please click here and see pages 17 and 18 for specific proposals on crop insurance.
Jen McPhillips (jennifer.mcphillips@iiaba.net) is Big “I” senior director, federal government affairs.
The 2008 Farm Bill coupled with the 2011 Standard Reinsurance Agreement (SRA) have already slashed the FCIP by $10 billion in just four years. Many members of Congress and industry groups agree that the crop insurance program has already been cut enough in the name of deficit reduction. It is important to now give the program some time to readjust to the recent huge cuts and changes to both the policy and implementation of the crop program.
The administration’s attempt to “streamline and modernize” the FCIP makes cut-to-the-bone reductions to subsidies for crop insurance, which subsequently raises the premium price for farmers. When asked, farmers have consistently stressed that ensuring a strong safety net is vital to the future of the nation's farming communities. Therefore, the Big “I” and many others organizations that support American agriculture find it counterintuitive to continuously slash a program that has worked so well for farmers and ranchers for many years.
As the budget talks continue, it is important that this proposal by the President not act as a springboard for the Super Committee—that was recently assigned the task of reducing federal budget deficits by at least $1.2 trillion—as their deficit reduction plan begins to take shape. The Big “I” will continue to remind Congress that disproportionate reductions to the FCIP have already taken place. With more than 18,000 crop agents across the country aiding farmers in making informed decisions about their livelihood, any additional cuts to the FCIP will drastically alter the efficient and effective safety net that has helped production agriculture prosper.
Please click here and see pages 17 and 18 for specific proposals on crop insurance.
Jen McPhillips (jennifer.mcphillips@iiaba.net) is Big “I” senior director, federal government affairs.
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