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Crop insurers oppose steep cuts in FY18 budget

Crop insurance providers are united in opposing the steep cuts proposed in President Trump’s Fiscal Year 2018 budget plan to crop insurance and expect Congress to push back.

Six groups, including the American Association of Crop Insurers and National Crop Insurance Services, say “destructive cuts to crop insurance have been proposed by past Administrations and soundly rejected by Congressional leaders” who know how important it is to keep a strong farm safety net.  On average, crop insurance companies pay 60% and farmers pay 40% of premiums.

The Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs would disappear for farmers whose gross income is less than 500-million dollars a year under the president’s budget proposal. The current threshold for those programs is $900-thousand dollars in adjusted gross income.