FarmPolicy

July 22, 2019

Farm Bill; Political Notes; Ag Economy; Trade; Biofuels; and Climate Issues

Farm Bill: Crop Insurance

AP writer Steve Karnowski reported yesterday that, “The federal government proposed Thursday to reward farmers who use crop insurance and demonstrate good management practices that limit their losses.

“The awards under the Good Performance Refund plan would average about $1,000 per eligible farmer, and payments would go out in the first quarter, in time to help with spring planting, said William Murphy, administrator of the U.S. Department of Agriculture’s Risk Management Agency. More than 67,000 farmers would be eligible, he said.

The plan will cost about $75 million, but the Federal Crop Insurance Corporation said the benefits will outweigh the costs by promoting sound farming practices that reduce losses, discouraging the filing of small claims and encouraging producers to keep using crop insurance. The agency also said the savings may allow for decreases in future premium rates, reducing costs to farmers and taxpayers who subsidize the federal crop insurance program.”

The AP article added that, “Draft regulations for the program were published in the Federal Register on Thursday. The public comment period ends Jan. 21. Murphy said his agency hopes to issue the final rule in mid-February and send out the checks shortly after that.”

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