A recent Government Accountability Office report suggests that reducing the rate of return to federal crop insurance companies would save the federal government money. The analysis suggested reducing that rate 5 percent from 14.5 percent to 9.6 percent. South Dakota Corn Grower’s Association President Troy Knecht says if that rate is lowered it takes incentives away from the insurance companies to provide a good product for farmers.

He says the federal crop insurance program has been working well for both the insurance companies and farmers.

Another part of the GAO report said if premiums were reduced by 5 percent it would save the federal government $100 million. Knecht says if the feds cut the crop insurance program it will negatively impact the overall economy.

Knecht says his group will weigh in with both the Senate and House Ag Committees as they write the next farm bill and encourage them to keep a strong crop insurance program in place.