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Vilsack explains proposed crop insurance cut

Ag Secretary Tom Vilsack defends a reduction in crop insurance in the president’s proposed 2017 budget.

In a budget hearing this morning, House subcommittee chairman Robert Aderholt of Alabama criticized the move citing current economic difficulties, sharply decreasing crop prices and a number of natural disasters, “There are number of uncertain economic factors in the future yet USDA is proposing to reduce crop insurance by $16.9 Billion over 10 years and make it increasingly difficult for them to secure funding.”

Vilsack testified that recent audits have criticized the USDA for not focusing on prevented planting concerns.

He described crop insurance as a partnership between taxpayers, farmers and insurance companies and said the proposal is more equitable in the price harvest loss area, “Where instead of subsiding 62% of the premium we would only subsidize a little over 50%. That seems to me to be an equitable partnership. So, I don’t think it necessarily destroys the (crop insurance) program. I think it responds to oversight concerns and I think it provides a more equitable partnership between the partners.”

Vilsack testified that both the Office of Inspector General (OIG) and the Government Accountability Office (GAO) had leveled the criticism against the administration and says the USDA had to pay attention to that.