Crop insurance soaks taxpayers during drought

  • Article by: EDITORIAL , Washington Post
  • Updated: January 21, 2013 - 12:48 PM

U.S. is paying huge subsidies in a year when farmers overall earned the second-highest net income total in the past three decades.

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savagemanJan. 21, 1312:27 PM

They won't reform it and it will cost more next year, they need the farmer vote. I'm guessing most of the payments go to large corporate farms.

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bluemocoJan. 21, 1312:47 PM

Crop insurance in and of itself is OK. However, we need to re-think the massive subsidies we give our farmers. IMO, we need to start with the vile Ethanol. There is no reason we should be using food as fuel, and there is certainly no quantifiable environmental benefit. Demand for corn to make ethanol raises corn prices and, hence, our food costs. The ethanol-induced, artificially inflated price of corn is a de facto farm subsidy and we need to end this silliness.

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EWernerJan. 21, 1312:50 PM

"In fact, farmers were well-protected against the drought - at significant cost to taxpayers." And most farmers are die hard Republicans and they have their hands stretched way out.

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mchuskerJan. 21, 1312:53 PM

So, a severe widespread drought cost the government $$ as per contracts with private sector companies (that also had a loss) and legal contracts with farmers that paid the legal amount required for the protection ? All on budget but subject to the whims of the weather. The affected farmers are still in business for 2013. Meanwhile, a two day Hurricane Sandy that affected a small geographic area with a large population cost $50 plus billion thus far - off budget and adding to the deficit... This was supported by the left wing Washington Compost, but not farmers that bought insurance to protect their business.

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gandalf48Jan. 21, 13 1:06 PM

Just another reason to reform the tax code and remove all subsidies. There's simply no need for any subsidies when it comes to private businesses whether it's farming, alternative energy, R&D, oil & gas or even the business you happen to work for...we need a level playing field for all.

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getcrazyJan. 21, 13 4:18 PM

"It reimburses administrative costs for the 15 insurance companies that sell the policies, to the tune of $1.4 billion in 2012, and also protects the companies against financial loss."----How do I get this subsidy to protect me from loss in my business? A risk free business? Guess I need to start selling crop insurance! Lets make that 16 insurance companies.

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lars1074Jan. 21, 13 6:59 PM

Crop insurance did the job it was intended to do. No disaster aid has been spent and the rural economy is strong.

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pjhawk95Jan. 21, 13 7:03 PM

Corporate farmers are gaming the American taxpayers just as bad as the rest of Corporate America and BTW most farmers are not Republicans after all DFL party stands for democratic, farmer, labor.

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jurburJan. 22, 13 7:09 AM

What other business gets this kind of government assistance year after year? Not only do farmers get paid by the government to insure their crops and for crop failure, they also get paid not to plant certain crops, to put aside acreage in conservation programs, for grain dedicated to biofuels, to raise beef instead of pork or visa versa, etc... I guess being "independent" free from big government interventions has its perks.

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hjlazniJan. 22, 13 9:26 AM

Big Business needing fewer employee hours to produce the same amount of product, putting small Business out of business by our elected representative, who are funded by, I expect, big Business. One of the reasons we have a mess to deal with.

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