An Annual Disaster
Crop Insurance: Conclusion
The Federal Crop Insurance Program could and should be a safety net farmers can depend on for help when they suffer a potentially crippling loss because of bad weather. The current program has strayed from that kind of safety net. EWG’s analysis of how crop insurance performed during the 2012 drought – a real disaster – shows just how little the program resembles a safety net when bad weather strikes. The insurance payouts are so large and so frequent and the revenue guarantees so generous, that the program now operates more like an income support program than a safety net.
If crop insurance can return to its roots by concentrating on protecting farmers from natural disasters instead of supporting farmer income, taxpayers will save a great deal of money while still providing farmers with a suitable safety net and reducing the number of environmentally sensitive acres that are farmed.