The Environmental Working Group is pleased with President Obama’s fiscal year 2016 budget proposal calling for significant cuts to crop insurance. E-W-G’s Senior Vice President for Agriculture and Natural Resources Craig Cox says the cuts make sense and will restore the crop insurance program to its original intent.
Obama’s budget plan calls for saving $ 16 billion over ten years with cuts to crop insurance and would save about $ 1.1 billion in fiscal year 2016 alone. Cox says high cost programs like crop insurance are a target and the President’s plan may get serious consideration with the budget cutting mood in Congress.
Cox expects more scrutiny of crop insurance in the future and thinks the revenue protection part of the program may get revamped. Another item that will get a lot of attention is the way profits and losses are shared by crop insurance companies and taxpayers.