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House Ag Appropriations Subcommittee Approves Amendment Restricting Crop PRPs

On Monday May 16, the House Appropriations Subcommittee on Agriculture approved the Kingston-Boyd amendment. This amendment provides that "none of the funds in the Act...
May 27, 2005

On Monday May 16, the House Appropriations Subcommittee on Agriculture approved the Kingston-Boyd amendment. This amendment provides that "none of the funds in the Act (FY-06 spending bill) be used to pay salaries and expenses and other costs associated with the implementing or administering of the [crop insurance] PRP program for the 2006 reinsurance year." The amendment passed, meaning that it still needs to be approved by the full Appropriations Committee and both houses in order to become law. The amendment will be considered by the full House Appropriations Committee during a mark-up session this week.

In a recent letter to the U.S. Department of Agriculture, Sen. Charles Grassley (R-Iowa) agreed with PIA that the plan is discriminatory. "I cannot tolerate a program that discriminates against family farmers by either denying insurance or charging the full premium, while giving the largest farmers the benefit of discounted premium," he said, calling for an investigation of the program.

PIA National Senior Vice President Pat Borowski, in a letter to USDA's Risk Management Agency, complained PRPs have not lived up to their intended purpose of expanding access to affordable crop insurance and effective risk management. "It has come to our attention that current approved PRPs are being offered primarily to large farmers with low loss ratios, while small farmers, minorities, women and disadvantaged farmers are not being offered a PRP," Borowski said. "This is completely contrary to the Premium Reduction Plans guideline of offering a PRP to anyone - regardless of the size or loss history of the farm." Borowski also complained PRPs are being operated in an "old school way, by simply cutting insurance producer commissions to meet the cost-savings goal."

PRPs Under Attack (Agrinews 5/19/05)

PIA Letter TO USDA-RMA (4/25/05)

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