Budget deal would cut popular crop insurance program

Outgoing House Speaker John Boehner of Ohio talks House Majority Whip Steve Scalise of La., during a news conference on Capitol Hill in Washington, Tuesday, Oct. 27, 2015. House Republican leaders on Tuesday pushed toward a vote on a two-year budget deal despite conservative opposition, relying on the backing of Democrats for the far-reaching pact struck with President Barack Obama. In his last days as speaker, John Boehner was intent on getting the measure through Congress and head off a market-rattling debt crisis next week and a debilitating government shutdown in December. The deal also would take budget showdowns off the table until after the 2016 presidential and congressional elections, a potential boon to the eventual GOP nominee and incumbents facing tough re-election fights. (AP Photo/Lauren Victoria Burke) Outgoing House Speaker John Boehner of Ohio talks House Majority Whip Steve Scalise of La., during a news conference on Capitol Hill in Washington, Tuesday, Oct. 27, 2015. House Republican leaders on Tuesday pushed toward a vote on a two-year budget deal despite conservative opposition, relying on the backing of Democrats for the far-reaching pact struck with President Barack Obama. In his last days as speaker, John Boehner was intent on getting the measure through Congress and head off a market-rattling debt crisis next week and a debilitating government shutdown in December. The deal also would take budget showdowns off the table until after the 2016 presidential and congressional elections, a potential boon to the eventual GOP nominee and incumbents facing tough re-election fights. (AP Photo/Lauren Victoria Burke)

By Associated Press October 27, 2015 3 min read

WASHINGTON (AP) – The two-year budget deal produces savings from one of the most popular programs in farm country – federally subsidized crop insurance – and farm state lawmakers are furious.

Senators and House members said Tuesday they weren’t notified of the cut before the deal was struck, with Republican leaders pushing for a vote this week on the budget pact. The crop insurance companies that depend on federal subsidies said in a statement that the proposed $3 billion in cuts over 10 years could be devastating to the industry.

Budget-writers in Washington have long eyed the crop insurance program, which costs more than $9 billion annually, as a pot of available money. But farm-state lawmakers have fought to protect it, saying it makes more sense than other farm subsidies since it pays out when farmers suffer losses.

Congress got rid of other types of subsidies in a wide-ranging farm bill last year, including payments that went to farmers regardless of crop yield or crop price. In turn, they increased federal support for crop insurance.

The budget deal would create the savings by lowering the rate of return for companies that sell crop insurance to farmers. The federal government partially subsidizes those companies and insures some of their losses.