President’s Budget Recognizes Crop Insurance is Key to Farm Safety Net
The President this week released his proposed Fiscal Year (FY) 2023 budget that fully funds the federal crop insurance program in recognition of the indispensable role that crop insurance plays in the farm safety net.
The release of the FY 2023 Budget follows a letter sent to OMB and the Secretary of Agriculture by 55 farming, banking, and conservation organizations asking that the administration protect crop insurance from harmful budget cuts.
The American Association of Crop Insurers, Crop Insurance and Reinsurance Bureau, Crop Insurance Professionals Association, Independent Insurance Agents and Brokers of America, National Association of Professional Insurance Agents, and National Crop Insurance Services released the following joint statement:
“America’s farmers and ranchers feed our nation, grow the fibers that clothe us, and provide an important economic driver for our rural communities. Over the past several years, crop insurance has helped farmers navigate the challenges posed by weather disasters, supply chain disruptions, and uncertain markets. The Administration has recognized the importance of crop insurance as a critical risk management tool by fully funding crop insurance in its FY 2023 budget.
“The crop insurance program works for farmers and taxpayers alike:
- By delivering aid quickly and efficiently, crop insurance continues to earn the trust of America’s farmers, protecting more than 90 percent of America’s planted crop land acres.
- Farmers invest in their own protection. Last year, farmers spent $5 billion to purchase crop insurance and then shouldered a significant portion of losses through deductibles.
- Crop insurance complements farmers’ efforts to invest in conservation and climate-smart farming practices.
- The federal government spends less than a quarter of 1% of its budget on the farm safety net, including crop insurance, making this a worthwhile investment to protect the world’s most affordable and safe food and fiber supply.
“We appreciate this Administration for fully funding crop insurance in its proposed budget. We urge Congress to follow suit by protecting and strengthening crop insurance.”