AGRIBUSINESS: Swapping Direct Payments For Crop Insurance

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Kansas Senator Pat Roberts has introduced legislation to strengthen the federal crop insurance program by eliminating direct payments to farmers. According to Roberts, his legislation would strengthen the farm safety net while saving taxpayers $5.2 billion over 10 years and preventing costly ad hog ag disaster programs.

The measure introduced by Roberts would reauthorize the federal crop insurance program and expand coverage options for producers through a Supplemental Coverage Option based on an area yield and loss basis. It would also amend the Federal Crop Insurance Act to make available separate enterprise units for irrigated and non-irrigated acreages of crops in counties. By increasing the county transitional yield, the bill also addresses the declining Actual Production History yield problem.

After three years of serious drought, Roberts says farmers are able to put seeds in the ground again not because of an agriculture ad hoc disaster package, but because they managed their risk and protected their operations through the purchase of crop insurance.