President Obama’s fiscal year 2016 budget proposal calls for cuts in crop insurance of $1.1 billion in 2016 and $16 billion over ten years. South Dakota Corn Grower’s President Keith Alverson says while he’s concerned with the proposal, he isn’t surprised by it. He says the President’s plan if approved would impact the harvest price option as well as all farm subsidies under the program.
Alverson agrees with House Ag Committee Chairman Mike Conaway that the budget plan is ill timed and would jeopardize the ability of producers to insure their crops in a climate of collapsing crop prices, major crop losses and falling farm income. He adds that the budget isn’t final yet and Congress has yet to weigh in.
of the farmers..:26 Seconds
Besides cutting harvest price policies under his plan, the President would also cut prevented planting coverage, in part by tightening payment rates.