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RMA Report Shows Improper Payment Rates Dropped

RMA Report Shows Improper Payment Rates Dropped

Photo: WNAX


A recent report from the Risk Management Agency notes that the improper payment rate of crop insurance in 2014 was at 5.6-percent, but that number dropped to 2.2 percent in 2015. Environmental Working Group Ag Economist Anne Weir says while it’s good the rate dropped, the way it was calculated also changed.

She says EWG will tell Congress when writing the next farm bill that the improper payment rate isn’t the biggest issue with crop insurance. Weir says it’s the overall cost of the program her group is concerned about.

Weir says if Congress reduces the subsidization level of crop insurance, they’ll also reduce the amount of marginal lands that are broken up and put into production. He says this will enhance the environment.

Crop insurance payments went from $23 billion in 2009 to $102.4 billion in 2016.

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