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PIA Crop Agents, Insurers Say Proposed Crop Cuts Are “Devastating”

Crop insurance agents and carriers say cuts to crop insurance proposed in President Obama’s 2013 budget proposals will have a “devastating” impact on the nation’s crop insurance delivery system
March 6, 2012

Crop insurance agents and carriers say cuts to crop insurance proposed in President Obama’s 2013 budget proposals will have a “devastating” impact on the nation’s crop insurance delivery system. PIA signed a joint industry letter to the leaders of the House and Senate Agriculture Committees, asking them for their help “in discouraging proposals that undermine the viability of the federal crop insurance program.” Under the Obama administration’s proposal, subsidies for the industry would be cut $8 billion over 10 years. This is in addition to the $6 billion in cuts over 10 years contained in a contract with underwriters that went into effect last year. While the President’s recent budget proposals are offered with the claim of “not harming the delivery system,” the proposals instead will have a devastating impact, especially when combined with multiple years of budget cuts. “The President’s proposals are estimated to bring nearly $8 billion in additional cuts to the program, and in our view, the sum of these cuts – and their impact – will significantly strain private sector delivery that has been in place since 1980,” the letter stated.

Read the letter sent to House Agriculture Committee: Crop Letter to House Leadership (2/17/12)

Read the letter sent to Senate Agriculture Committee: Crop Letter to Senate Leadership (2/17/12)

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