Agricultural economists say the crop insurance program could cost 15-billion dollars this year as a result of the drought. That price tag could make crop insurance a bigger target for reforms as Congress looks for ways to cut government spending. While the government and industry want to wait until late fall – when harvest is ending – to estimate costs – it’s reported that 2.6-billion dollars has been paid so far in 2012 for crop indemnities. The Environmental Working Group has argued crop insurance favors big farmers and is in need of reform. Craig Cox of the EWG believes the rising cost will bring more attention to the issue. It could possibly get attention as soon as the lame duck session of Congress – when the farm bill is expected to come up in the House.
Source: NAFB News Service