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Is Federal Crop Insurance Policy Leading to Another Dust Bowl?

Thursday, March 23, 2017

As the southern Great Plains get hotter and drier, is federal policy that encourages farmers not to adapt to climate change leading to another Dust Bowl?

That’s the troubling question raised by a new EWG report that shows how a provision in the federal crop insurance program provides a strong financial incentive for growers to plant the same crops in the same way, year in and year out, regardless of changing climate conditions. What’s worse, this program is focused on the same southern Great Plains counties hit hardest by the Dust Bowl of the 1930s, the worst man-made environmental disaster in American history.

The federal crop insurance program guarantees farmers’ earnings from their crops won’t fall below a percentage of their usual income. The percentage is set based on a multi-year average of a farmer’s actual crop yields. Averaging good and bad years grounds the program in reality.

But a provision called the Actual Production History Yield Exclusion – snuck into the 2014 Farm Bill during conference negotiations – allows growers to drop bad years from their average crop yield calculations. The government simply pretends these bad years didn’t happen. In some cases, more than 15 bad years can be thrown out when calculating the average yield, resulting in artificially inflated insurance payouts.

It makes sense for crop insurance to give growers a break if they’re occasionally hit by one or two bad years, but keeping growers on a treadmill of failed crops and insurance payouts is foolish. Helping farmers adapt to the new weather conditions would be considerably better, and was exactly what helped growers survive the Dust Bowl and return to productivity.

The southern Great Plains are getting hotter and drier. Drought has been common over the last 10 years and forecasts show the number of days above 100 degrees quadrupling by 2050. Implementing conservation practices to adapt to changing climate conditions is vital for growers who want to stay in business.

Some, but not enough, growers are already adopting conservation techniques in this region. Savings from ending the misguided yield exclusion policy could be used to help more growers change the way they farm to face the challenges posed by a changing climate.

 

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