Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
1Activity
0 of .
Results for:
No results containing your search query
P. 1
Crop Insurance and 2012 Drought

Crop Insurance and 2012 Drought

Ratings: (0)|Views: 11|Likes:
Published by Patricia Dillon

low farm yields IN CORN Belt
STATES DUE TO ThE 2012 DROUGhT
hAVE lED TO ThE hIGhEST CROP
INSURANCE PAYOUTS IN hISTORY.
PAYOUTS (INDEmNITIES) FOR ThE YEAR
WIll EXCEED $16 BIllION, AN AlmOST 50
PERCENT jUmP FROm ThE ThEN-RECORD
$10.8 BIllION PAID OUT ThE YEAR BEFORE'

2013babcock

low farm yields IN CORN Belt
STATES DUE TO ThE 2012 DROUGhT
hAVE lED TO ThE hIGhEST CROP
INSURANCE PAYOUTS IN hISTORY.
PAYOUTS (INDEmNITIES) FOR ThE YEAR
WIll EXCEED $16 BIllION, AN AlmOST 50
PERCENT jUmP FROm ThE ThEN-RECORD
$10.8 BIllION PAID OUT ThE YEAR BEFORE'

2013babcock

More info:

Published by: Patricia Dillon on Jul 12, 2013
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

03/15/2014

pdf

text

original

 
www.ewg.og
1436 U Street. NW, Suite 100Wasington, DC 20009
environmentalworking group
 
April 2013
Taxpayers,Crop InsuranCe,and The droughTof 2012
 
Taxpayers, Crop Insurance, and te Drougt of 2012
2EWG.og
C
Authos
Bruce Babcock P.D.Professor of EconoicsIowa State University
peface
Craig CoxVice President for Agricutureand Natura ResourcesEWG
Edto
Nis BruzeiusExecutive Editor and VP forPubicationsEWG
Desgnes
Aan AndersonTy Yaniz
3
Preface
4
Fu Report
5
Crop Insurance in 2012
7
Preius and Subsidies
10
Crop Insurance Progra Costs
14
2012 Payouts witout Revenue Protection
14
Wat Constitutes an Adequate Safety Net?
19
Notes
Acnowedgements:
EWG tanks te Waton Faiy Foundation for itssupport for tis researc.Te autor tanks Xiaoong Zu for er dataassistance.
HEADQUArTErS
1436 U Street. NW, Suite 100Wasington, DC 20009(202) 667-6982
CAliFOrNiA OFFiCE
2201 Broadway, Suite 308Oakand, CA 94612
MiDWEST OFFiCE
103 E. 6t Street, Suite 201Aes, IA 50010
SACrAMENTO OFFiCE
1107 9t Street, Suite 625Sacraento, CA 95814
Aout EWG
Te ission of te Environenta Working Group(EWG) is to use te power of pubic inforation toprotect pubic eat and te environent. EWG is a
501(c)(3) non-prot organization, founded in 1993 by
Ken Cook and Ricard Wies.
rent pemsson
To request reprint perission, pease eai a copet-ed request for to
emssonequests@ewg.og
 
3
Environenta Working Group
prEFACE
by CrAiG COxViCE prESiDENT FOr AGriCUlTUrE AND NATUrAl rESOUrCES, EWG
T
hERE WERE TWO REASONS ThATENVIRONmENTAl WORKINGGROUP (EWG) COmmISSIONEDAGRICUlTURAl ECONOmIST BRUCEBABCOCK OF IOWA STATE UNIVERSITY TOANAlYZE hOW ThE hEAVIlY SUBSIDIZEDFEDERAl CROP INSURANCE PROGRAmPERFORmED DURING ThE CORN BElTDROUGhT OF 2012.
First, te 2012 drougt drasticay cut crop yiedsacross severa states – just te kind of event tat
many economists agree justies a role for taxpayers
in providing farers wit a safety net. Second,Congress is about to take up te far bi again underserious pressure to cut spending. Te taxpayer costof crop insurance as grown steadiy since 2000 andnow is te ost expensive governent prograsupporting far incoe. EWG tougt te 2012drougt woud be te perfect case to test weterit’s possibe to save federa tax doars wie sti
providing an eective safety net for farmers facing
potentiay cripping osses.Dr. Babcock’s concusions soud be a wake-up cafor taxpayers and te senators and representatives
in Congress charged with creating a more scallyresponsible safety net. His key ndings:
Over-generous subsidies ave turned cropinsurance into ore of a far incoe supportprogra tan a risk-anageent progra.
Taxpayers coud provide farers wit a secure
oor under their nances for less than half of 
wat te current progra costs.
Atoug avoiding
ad hoc 
disaster reief expenses as been one of te ost-often cited
 justications for subsidized crop insurance, the
current insurance progra cost taxpayers farore in 2012 tan traditiona disaster reief woud ave.
Taxpayers wi bear te burden of aost 75percent of te 2012 insurance payouts; andsince 2001, insurance copanies ave enjoyed$10.3 biion in underwriting gains – wietaxpayers ave ost $276 iion.Tis atest report fro Bruce Babcock adds to tegrowing evidence tat coon sense refors tocrop insurance woud save biions of doars wie
still providing a solid safety net, cutting the decit and
investing in progras tat iprove uan eatand te environent. So far, owever, te subsidyobby as anaged to pus Congress in te oppositedirection. If eiter te faied Senate or houseAgricuture Coittee far bi proposas fro astyear were to becoe aw, taxpayers woud be askedto pay even ore for crop insurance wie funding forconservation and nutrition progras went under tebudget knife.Congress soud and coud do far better as it takes upte far bi again tis year.

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->