Trump Budget Includes Crop Insurance Cuts

Trump Budget Includes Crop Insurance Cuts
Photo Credit:AgView | Story Source: NAFB

The fiscal year 2020 budget submitted by President Donald Trump includes a couple of points sure to ignite debate in the budgetary process. The proposal includes imposing work requirements on Supplemental Nutrition Assistance Program recipients.


The Hagstrom Report says the proposed budget also imposes work requirements on recipients of Medicare and federal housing benefits. The work requirements will likely reduce program participation. That’s part of an administration plan to reduce federal mandatory and discretionary spending. A senior administration official says these are the biggest proposed cuts made by any president in history.


However, Congress generally doesn’t follow presidential budgets when they write appropriation bills. The budget proposal is typically seen more as a statement of administration priorities. The proposed budget will also cut back on farm subsidies paid out to farmers in the highest income brackets. It would also reduce the average premium crop insurance subsidy from 62 percent to 48 percent. It would also limit commodity, conservation, and crop insurance subsidies to producers that have an adjusted gross income of $500,000 or less.



Several organizations within the crop insurance industry were not happy with President Trump’s proposed budget announcement this week. The budget included steep spending reductions at the Department of Agriculture and the federal crop insurance program. The president’s budget proposal won’t receive much consideration by Congress.


However, the American Association of Crop Insurers, the Crop Insurance and Reinsurance Bureau, along with many other organizations issued a statement saying they were disappointed with the crop insurance cuts. “Those proposed cuts come just months after the importance of crop insurance was reaffirmed by the passage of the 2018 Farm Bill,” the groups said in a joint statement. “If this shortsighted proposal would be adopted, it would seriously undermine a critical safety net for farmers when they need it most.” National Farmers Union President Roger Johnson was in agreement. “There’s a real disconnect between the president’s priorities and the economic realities facing family farmers, ranchers, and rural communities,” says Johnson. “Rather than undermine the 2018 Farm Bill by proposing cuts to important programs, the President should be working to build on that success by providing additional needed support to family farmers and ranchers.”

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