U.S. 2016 Farm Income To Stabilize

[marketeye]

On Tuesday, the USDA releases its new estimates for U.S. 2016 Farm Income. Here's the long and the short of the report:

The short version is farm income to drop about 3 percent in 2016, stablizing after dramatic declines in 2014 and 2016. big gov't payments offset drop in crop and livestock income.

Meanwhile, in a separate document, President Obama released a record-spending $4.1 trillion budget for FY 2017. The kicker for ag is that he wants to cut the crop insurance program by $18 billion over 10 years, including $1.26 billion in FY 2017, according to a fact sheet on his newly proposed fiscal 2017 budget.

Specifically, Obama's plan calls for reducing the farmers' subsidy by 10 percentage points for harvest price revenue coverage and reforming coverage for prevented planting.

What say you about all of this? It is interesting that this paragraph on crop insurance cuts was the very last item in the fact sheet. Anyway, here it is:

Restructures Crop Insurance Subsidies and Payments. The Agricultural Act of 2014 included several reforms to the Federal crop insurance program; however, there remain further opportunities for improvements and efficiencies. The Federal crop insurance program continues to be highly subsidized and costs the Government on average about $9 billion a year. This includes $3 billion for the private insurance companies to administer and underwrite the program and $6 billion in premium subsidies to farmers and other expenses. The Budget includes two proposals to reform crop insurance. The first would reduce subsidies for revenue insurance policies that insure the price at the time of harvest. The second would reform prevented planting coverage, including removing optional buy-up coverage. These proposals will modify the structure of the crop insurance program so that it is less costly to the taxpayer, yet still provides a safety net for farmers. Collectively, these proposals are expected to save $18 billion over 10 years.

Mike

[illinifarmer]

Wow more good news "Shocking"

[roarintiger1]

$9 billion???????  How about cutting the other $18 trillion, 991 billion ?

$18 billion in 10 years?    The national debt will be on it's way to 30 trillion by then.     Again, $18 billion?  Now that's a real savings that is...............

Are the folks in DC really idiots?

[WCMO]

Worse, they're idiots on both ends of influence, giving and receiving.

[Hobbyfarmer]

NO we are the idiots for putting up with tis situation.

[bruce MN]

How would you have fought it if given a "do over". 

[illinifarmer]

Revolution- start with a nationwide strike teachers and unions do it every other year and look at the results they speak for themselves. Somewhere along the way we have gotten soft more of a just settle and accept generation. Farmers are extremely independent and more stubborn than not. Where's the passion the longing for something greater a better life for you and the family. It's time everyone starts coming together to do what we all know morally must be done to survive. Just a thought. What say you??

[sw363535]

Bruce I am not sure I know what your definition of "it" is.  🙂    If you mean fought crop insurance or fought the deficit or just fought life in general...

Crop insurance is a tough expenditure to support.  At least in my mind....  It seems to come across as a subsidy that is missrepresented as an agriculture benefit...  But is in effect a cash transfer to a "sudo" insurance industry.  An industry that exists largely because of the expenditure and usda's ever changing and redefining of coverage.  

A complicated mess...

The ag budget was pillaged and transfered to other needs long ago.. this is just one example..

Wheat would be the best example of the ineffective and unexplainable result of subsidized Crop Insurance... for five years in a row there have been huge insurance claims in wheat producing states.  And yet we have built a burdonsome wheat surplus according to those who print information..... And farmers continue to go "out" of business in those areas...... Why aren't they asking "How can this happen?"

How does congress and usda get by with the continuing ineffectiveness of its programs.

We have been subsidizing production for decades(, programs declared to help those in trouble in production agriculture or at least address problems).  Yet we farmers leave the farm in droves every time there is an increase in government expenditures to help.

[elcheapo]

"farm income to stablize"............well when you are at the bottom, you can't fall much lower.

[marketeye]

bruce MN,

Hey, good to hear from you bruce. For some of us that have been around here for a long time, we can say it has been awhile since we've seen your handle. Thanks for chiming in. I'm sure you have been lurking out there all of the time, but it's good to see folks come out from under the shade and into light from time-to-time.

Mike