As feared, the federally subsidized crop insurance program is on the chopping block again, based on the Obama administration’s 2017 budget proposal released Tuesday.
“The Agricultural Act of 2014 included several reforms to the federal crop insurance program,” noted a USDA factsheet on the president’s budget proposal for the agency. “However, there remain further opportunities for improvements and efficiencies.”
Those opportunities include the following:
- Reduced subsidies for harvest price option coverage on crop insurance policies.
- Changes to prevented planting coverage, “including removing optional buy-up coverage.”
Such reforms are estimated to save $18 billion over 10 years, according to USDA.