Cuts to crop insurance proposed in the President’s fiscal year 2015 budget has caught the attention of the President of the South Dakota Corn Grower’s Association. Keith Alverson of Chester says he knew during the farm bill debate that savings for other government programs was going to have to come from somewhere. He says he’s not totally surprised crop insurance has been targeted.
The President’s proposed budget calls for cutting premium subsidies on some crop insurance policies by 3 % and other policies an additional 4 %. Alverson says it’ll be a tough lift convincing lawmakers far removed from the farm as to the importance of retaining the crop insurance achieved in the farm bill.
The White House has estimated the cuts they propose would reduce crop insurance costs by $ 14.2 billion over 10 years. Congress however would have to draft new legislation to make those cuts.