FarmPolicy

August 19, 2017

Crop Insurance; Biofuels; CRP; Food Security; Climate Issues; and Animal Agriculture

Crop Insurance

DTN Ag Policy Editor Chris Clayton reported yesterday (link requires subscription) that, “Potential cuts to the crop insurance industry would be about 20 percent less than originally proposed, but agent commissions would be capped under a new draft of the standard reinsurance agreement between USDA and the crop insurance industry, USDA officials said Wednesday.” [Note: For more background on the standard reinsurance agreement, click here and here.]

“Though USDA had originally declined to detail the savings in the first proposal, the White House’s proposed budget detailed $8 billion in crop insurance savings over 10 years. Officials said Thursday the actual projection was closer to $8.4 billion. The proposed changes would still cut costs for crop insurance by about $6.7 billion over 10 years, based on percentages and numbers offered by USDA officials.

“‘I think the companies overall would be satisfied with the direction of the movement,’ said Bill Murphy, administrator of USDA’s Risk Management Agency.”

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