Crop Insurers Win as Congress is Poised to Pass Farm Law

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http://www.bloomberg.com/news/2014-02-04/crop-insurers-win-as-congress-is-poised-to-pass-farm-law.html


Lawmakers are betting that government-backed private insurance will be better than the program being replaced: a direct-payment system that distributed $5 billion a year based on acreage. Supporters of the change say payouts based on losses is more cost-effective and targets farmers in need.

Crop insurers successfully lobbied to keep several proposals out of the farm bill set to pass the U.S. Congress today -- such as a requirement that would have forced farmer-lawmakers to disclose benefits they receive.

Negotiators left out of the almost $1 trillion bill a House measure to require members of Congress and the president’s cabinet to report what they receive in crop insurance aid. Also omitted was a Senate-backed provision to limit premium subsidies for the wealthiest farmers.

Congress “once again chose to increase unlimited subsidies to the most profitable and financially secure farm businesses,” Ken Cook, president of Washington-based Environmental Working Group, said in an e-mail. He said the crop insurance program is “already bloated.”

Lawmakers are betting that government-backed private insurance will be better than the program being replaced: a direct-payment system that distributed $5 billion a year based on acreage. Supporters of the change say payouts based on losses is more cost-effective and targets farmers in need.

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1. more looting

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2. indeed. nt