crop insurance
Trump, a supporter of ethanol, less farm regulation
President-elect Donald Trump campaigned as a supporter of corn ethanol and said he would protect farmers from over-regulation. His senior advisor, Sam Clovis, said the New York businessman does not support the idea, popular among conservative House Republicans, of splitting food stamps from the rest of the farm bill.
Weakening farm economy jeopardizes future of some farmers
The third year of weakening U.S. farm income will create "more questions about the ability of some producers to continue to operate after experiencing losses for multiple consecutive years," says the Kansas Federal Reserve Bank. The sour economy is causing ripple effects in farm towns in the Plains, ag bankers told the regional Fed.
Vilsack: Financial stress on the rise as farm income falls
Despite the strong foundation of the farm sector, "it is clear financial stress is increasing and some producers are more exposed to financial risk," said Agriculture Secretary Tom Vilsack in Senate testimony that balanced concern with falling farm income with a valedictory list of the administration's eight-year record in agriculture.
EWG: U.S. needs stronger, more focused conservation program
Voluntary soil and water conservation programs "aren't leading to clean water, clean air and a healthy environment," says the Environmental Working Group in unveiling a database that tracks federal conservation spending to the county level. EWG says Congress should require farmers to perform more stewardship work in exchange for farm supports, and focus scattershot conservation programs on the practices with the greatest payoff in the areas with the greatest need.
Warning signs, although farm sector finances are relatively strong
After a review of farm-sector financial indicators, economist Brent Gloy says, "Caution going forward would be appropriate," particularly for operators who are borrowing money. The commonly used debt-to-asset ratio is low, Gloy writes at the Agricultural Economic Insights blog a day before USDA updates its farm-income forecast, but lesser-known yardsticks, such as the debt-service ratio and times-interest-earned ratio "indicate that financial conditions are as poor as any seen for some time."
Big corn crop and low prices may trigger crop-insurance indemnities
U.S. farmers are headed for a record-large corn crop at the same time that market prices may be the lowest in a decade — a combination that could trigger crop-insurance indemnities for farmers who bought high levels of revenue insurance, says DTN. "In fact, many corn growers could trigger 2016 crop insurance pay-outs with no yield loss."
Australian study rejects government-subsidized drought insurance
Unlike other countries, including the United States, Australia does not provide subsidized insurance against drought. A newly released study, commissioned by the state of New South Wales after three years of drought across the nation's East coast, rejected any change in policy, says Reuters.
Federally subsidized crop insurance reached 297 million acres
Farmers bought crop insurance policies on 297 million acres in 2015, covering 85 percent of land planted to major field crops such as corn, wheat, cotton and soybeans, an increase of 16 percent from the coverage area in 2010, according to Risk Management Agency data. Coverage of fruit, vegetables and other specialty crops has grown more slowly, to reach 8.3 million acres last year.
Senators cite discrepancies in crop subsidy rates
The senators from the No. 1 corn state in the country, Iowa, asked USDA to explain how it determines county yields, a key factor in determining subsidy payments.
Economist tries to find rationale for crop insurance subsidies
After raising the question if there is an objective rationale for the high premium subsidy given to farmers who buy crop insurance, economist Carl Zulauf combed years of data for an answer. In a blog at farmdoc Daily, he says the answer may be to consider the types of risks that farmers face.
USDA skimps on checking if farmers reduce erosion, preserve wetlands
The government rarely checks to see if farmers carry out soil and water conservation duties that are part of the farm subsidy program, said Agri-Pulse, citing a report from the USDA's inspector general. The IG reported that random sample reviews were conducted in only one of USDA's farm support programs from 2012-14.
Large and rising costs make crop insurance a budget target
The pricetag for the federally subsidized crop insurance program more than doubled in a decade, blossoming to a $8.6 billion line item in 2014, writes Ohio State economist Carl Zulauf in a blog titled, "Why crop insurance has become an issue."
Ag outlook dour, wrong time to cut farm supports
In preview of issues for the 2018 farm bill, the leaders of the two largest U.S. farm groups argued against cuts in farm subsidies as the agricultural sector endures years of low commodity prices and income that is a fraction of the record set in 2013 at the end of a seven-year boom.
Top question for 2018 farm bill: Is the safety net working?
Congress is two years away from drafting the new farm bill but Roger Johnson already can name the leading question for farm policy. "The big issue in the next farm bill will be, is the safety net really working for farmers?" Johnson, the president of the National Farmers Union, told Ag Insider. "We have a lot of folks who are beginning to struggle financially."
Estimated cost of new U.S. farm subsidies nearly doubles
Instead of saving money on crop subsidies, the 2014 farm law will cost far more than anticipated, says economist Vince Smith of Montana State University.
Capitol Hill says a stony ‘no’ to crop-insurance reform
Leaders of the Senate and House Agriculture committees quickly rejected the Obama administration's proposed $18-billion cut in the federally subsidized crop-insurance program.
Farm income forecast at half of 2013’s peak for years
Low commodity prices will hold net farm income below $60 billion annually - half of the record $123 billion of 2013 - for years to come, said a University of Missouri think tank.
Big gap between farm costs and likely crop revenue
Corn and soybean growers in the Midwest face nearly $480 an acre in fixed costs and land rent going into the planting season, and hundreds of dollars more in per-acre expenses for the so-called variable costs of producing a crop, says economist Brent Gloy.
Farmers to get $10 billion in economic assistance
President Biden signed a stop-gap government funding bill over the weekend that calls for speedy payment of $10 billion to farmers to buffer lower commodity prices and high production costs. Congress voted to fund the government through March 14 after a fight that showed the limits of President-elect Trump's control over Republican lawmakers.