Wisconsin Congressmen Ron Kind and Jim Sensenbrenner have introduced the Assisting Family Farmers Through Insurance Reform Act. The measure calls for cutting crop insurance and estimates savings at $ 24.4 billion over 10 years. Iowa Corn Growers Association President Bob Hemesath says it doesn’t make sense to make all the federal budget cuts to crop insurance when other programs should be looked at.
Congressman Sensebrenner says his bill makes cuts to reduce unnecessary subsidies directed towards the country’s largest and most profitable farms and agribusinesses. Hemesath says that’s not logical because premium subsidies are the same for each farm no matter its size.
This legislation comes a week after Congress passed a budget agreement that lowered the profit margin to crop insurance companies to 8.9 percent from 14 percent generating $ 3 billion in savings.