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Senate Ag Committee takes closer look at crop insurance and commodities for farm bill

The Senate Ag Committee says it wants to enhance current farm safety net programs and crop insurance investments in the next farm bill. In Thursday’s committee hearing, lawmakers asked for USDA’s feedback on adjusting reference prices in the Ag Risk Coverage and Price Loss Coverage programs.

“When we talk to producers there’s lots of concern about rising input costs. Our delivery of programs is critical to put money in their pockets to help address that,” said Robert Bonnie, Under Secretary for Farm Production and Conservation.

Ranking Member John Boozman said for the last 6 years, more than $70 billion has been paid to farmers in ad-hoc disaster relief. Lawmakers want to find a better way to use that kind of money to help agriculture.

“How do we capture some of that $70 billion, put it in programs people rely on and use responsbily?”

John Hoeven, the U.S. Senator for North Dakota, said if Congress can improve existing safety net programs and provide more flexibility, it could reduce the need for ad-hoc disaster programs.

“If we do that well, it will make a huge difference for the next five years.”

Lawmakers also agreed crop insurance is an important risk management tool for farmers, but Boozman does not want USDA to tie  crop insurance to specific conservation practices. Watch the hearing.