Crop Insurance: USDA-SRA
Bloomberg writer Alan Bjerga reported yesterday that, “Wells Fargo & Co., Ace Ltd. and other companies that provide crop insurance to farmers will receive $6 billion less in federal funding over 10 years under a proposal by the U.S. Department of Agriculture.
“Payments for administrative costs subsidized by the government would be capped at $1.3 billion next year with the limit rising to $1.37 billion in 2015, according to the final draft of the USDA’s offer to companies. Insurers have 30 days to negotiate technical details before the plan is adopted, said Bill Murphy, head of the department’s Risk Management Agency.
“The plan, the result of negotiations that began in December, ensures ‘a fair and reasonable return’ for companies while reducing profits the USDA considers excessive, Agriculture Secretary Tom Vilsack told reporters today in Washington. ‘We have the framework for a stronger program.’”