No need for farmers to worry about drought.

Taxpayers should worry about the drought, not farmers. Taxpayers pick up about 60% of the cost of crop insurance.  There is no good reason why taxpayers should subsidize crop insurance.  As with many government programs, there is abuse in crop insurance.  Crop insurance sales agents are paid commissions as high as 20%  of the total premium! This would never take place in a private market.  If nothing else, the full cost should be charged back in premiums and there should be no taxpayer subsidy.  p.s. – Under the proposed Farm Bill, insurance will not only cover crop losses due to weather, but will also cover low prices – so that a profit is pretty much guaranteed.

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4 thoughts on “No need for farmers to worry about drought.

  1. In 2011, agent commission averaged 8.0%… Price coverage has been available since the 1990’s… Profit has never been guaranteed, but don’t let the facts get in your way.

  2. Assuming Congress decides to eliminate direct payments, ACRE and SURE the farmer may have already “given enough at the office” for this nxt Farm Bill… Once the baseline is lost it is never recovered… The new “insurance” programs are not – they are FSA delivered “activity” to justify keeping 99 county FSA offices open in Iowa…. They are not part of the current insurance program, the taxpayer should oppose STAX, SCO, etc.

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