The Congressional Budget Office’s latest 10-year budget projections show Americans spending two cents per meal to fund federal crop insurance.
From 2000 to 2011, federal crop insurance cost Americans one cent per meal. This one-cent increase comes despite the five-year, $100 billion per year farm bill. Most of the farm bill money goes to domestic food programs. Only about 15 percent of the budget supports farm programs and crop insurance.
In part, these rising insurance prices are the result of bad weather. Crop insurance protects farmers against inclement weather, and with droughts affecting many areas in the U.S., farmers need crop insurance more than ever. The government spends roughly $8.5 billion per year on farm insurance while farmers pay $4 billion out of pocket to buy policies. Read more here.
The Senate’s farm bill creates a link between conservation compliance and crop insurance subsidies. Farmers with high-adjusted gross incomes will receive smaller subsidies than low-income farmers will. Read more here.