A proposal made by the House of Representatives Budget Committee yesterday would cut U.S. farm and crop insurance subsidies by $30 billion over 10 years, which is a much greater reduction than agricultural-state lawmakers suggested previously. Budget chairman Paul Ryan called for the reductions.
Ryan’s plan would reduce “the fixed payments that go to farmers irrespective of price levels” and “reform the open-ended nature of the government’s support for crop insurance so that agricultural producers assume the same kind of responsibility for managing risk that other businesses do.
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The potential effect is two-fold, however. If the proposed budget is passed, there is a strong possibility that there will be no farm bill this year.
According to Representative Colin Peterson (D-MN), it will essentially guarantee it.
Republican leaders, in attempting to avoid defense cuts, have chosen to “leave farmers and hungry families hurting,” Peterson, the ranking Democrat on the House Agriculture Committee, said in an e-mailed message.
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If a farm bill is not passed this year, Congress would need to approve an extension of the existing farm law or else a 1949 law, which comes with higher costs and limited planting regulations, would go into effect.
Let the partisan debate begin.