• Business & Economy
  • Politics & Government
    • Campaign Countdown
      • 2012 Reports
  • Sports
  • High School Sports
    • Football Friday Night
    • Radio Iowa Poll
  • All Topics

Radio Iowa

Iowa's Radio News Network

  • Home
  • Audio Archives
  • Contact Us
  • Reporters
  • Affiliates
  • Affiliate Support
  • PostsComments
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 & Government Tagged With: Corn & Soybeans, Iowa State University, Taxes

Featured Stories

ISU expert says roofs should be able to handle snow load

Buyer plans to reopen Boondocks Truck Stop

How do schools make up days missed for winter weather?

Democrat from Cedar Falls resigned from Iowa Senate today

DOT could end up with a record use of salt and sand on roadways

TwitterFacebook
Tweets by RadioIowa

Iowa State looks to bounce back at TCU

IHSAA to discuss ways to strengthen dual team tournament

Drake holds off Southern Illinois

Bohannon’s three pointer caps furious Iowa rally

Iowa State holds off Oklahoma

More Sports

eNews and Updates

Enter your email address:

Delivered by FeedBurner

Archives

Copyright © 2019 · Learfield News & Ag, LLC