• Home
  • News
    • Politics & Government
    • Business & Economy
    • Crime / Courts
    • Health / Medicine
  • Sports
    • High School Sports
    • Radio Iowa Poll
  • Affiliates
    • Affiliate Support Page
  • Contact Us
    • Reporters

Radio Iowa

Iowa's Radio News Network

You are here: Home / Agriculture / Economist makes case for reducing federal crop insurance subsidy

Economist makes case for reducing federal crop insurance subsidy

July 19, 2012 By O. Kay Henderson

Bruce Babcock

An Iowa State University economist is in Washington, D.C. today, to make the case that congress should make changes in federal crop insurance. Part of Bruce Babcock’s research focuses on the development of risk management strategies for farmers.

“I think crop insurance is very important to farmers,” Babcock says. “But I think that some reform of the program could save $20-30 billion over 10 years and really have no impact on the availability of the risk management tools that farmers need.”

The crop insurance program is “hugely expensive,” according to Babcock.

“One of the reasons why it’s gotten so expensive is the tremendous amount of premiums subsidies that farmers get, so the government pays a large portion of their insurance premiums and so farmers respond by buying more insurance,” Babcock says. “So I just think if we’re going to be cutting programs that impact farmers and the food supply and nutrition, we ought to be looking at those premium subsidies.”

The federal government provided $1.5 billion to farmers in 2002 to subsidize crop insurance. Last year, the federal government provided about $7.4 billion in crop insurance subsidies — a nearly 500 percent increase. Babcock estimates taxpayer subsidies cover 62 percent of crop insurance costs nationwide.

Share this:

  • Facebook
  • Twitter

Filed Under: Agriculture, News, Politics / Govt Tagged With: Corn & Soybeans, Iowa State University, Taxes

Featured Stories

Governor hails passage of ‘transformational’ state government reorganization

Economic impact of Iowa casinos tops one billion dollars

State board approves millions in settlement with former Hawkeye football players

Monroe County man dies while serving prison term for killing brother

Bill would make changes in Iowa’s workplace drug testing law

TwitterFacebook
Tweets by RadioIowa

Traveling to Texas to watch the Hawkeyes in the Final Four will cost you

Iowa women are headed to the Final Four

Ogundele and Ulis are leaving the Iowa basketball program

Iowa plays Auburn in NCAA Tournament

Volunteers help pull off NAIA Women’s basketball championship in Sioux City

More Sports

Archives

Copyright © 2023 · Learfield News & Ag, LLC