Almost every day we are warned that we must pass a Farm Bill because, “… if we allow the current bill expire we will revert back to the 1949 law that will raise the price of milk to $7 per gallon!” Why is it that this situation never changes? I’ve heard this same threat for decades. Any new Farm Bill should include a provision to repeal this archaic 1949 law and stop all government intervention in farm markets if the Farm Bill expires.
Taxpayers subsidize about 60% of the premiums that farmers pay for crop insurance – regardless of how wealthy the farmer is, regardless of the income of the farmer, and regardless of whether or not the owner actually even works on a farm. Crop insurance covers not only losses due to disasters, but it also covers losses due to low prices. There is no ethical, moral, or food security reason why wealthy farm owners should be receiving any subsidy. Most farms, like most other businesses, need disaster insurance. But, there is no good reason why taxpayers should subsidize the premiums. Farmers say they need a 5-year farm bill so that they can properly plan. That is understandable. Let’s let them plan on not receiving any subsidy on their crop insurance.