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Wisconsin Democrat defends position on capping crop insurance
Wisconsin Congressman Ron Kind (D)
Ron Kind of Wisconsin defended his position on capping crop insurance during a visit to Capitol Hill as part of NAFB’s Washington Watch.
Talking to reporters Wednesday, the House Ways and Means Committee member doubled down on his proposal to cap crop insurance premium subsidies at $40,000 dollars and eliminate individuals whose gross income is more than $250,000.
“One of the proposals we’ve had that has bipartisan support is very simple. (it says) If you’re making a quarter of a million dollar profit, should you still be receiving taxpayer subsidies? This is after you back out all the expenses, all the operating costs of doing business. I mean a quarter of a million dollar profit is not a bad living.”
However, House Ag Committee Chairman Mike Conaway of Texas says having a means test on crop insurance is inappropriate.
“Income support programs (like) Title I and others, yes you ought to have means testing and we do. But a risk management tool that is crop insurance? The risks associated with the bigger farms is the same as the risks associated with smaller farms.”
Conaway suggests crop insurance is a food security issue and needs to be protected in the next Farm Bill.
Ron Kind audio:
Mike Conaway audio:
Congressman Kind, there is a big difference between Gross Income of $250,000 versus “making a quarter of a million dollar profit.” Gross Income and Profit have too VERY distinct meanings. Any 400 acre corn farm averaging 170 bu/acres @ $3.75 has “Gross Income” above your threshold. What about inputs-fuel, seed, fertilizer, etc.? Taxes? Health Insurance? At best, margins are thin. Obtaining a profit of a “quarter of a million dollar[s]” is net only after expenses. Unlike Congress we cannot deficit spend and stay in business.