Young Introduces Legislation to Restore Crop Insurance Levels

Press Release

This week the U.S. House of Representatives approved a budget measure which stripped $3 billion from the federal crop insurance program. Iowa Congressman David Young voted against the budget measure and introduced legislation that reverses those cuts.

Young's bill, H.R. 3845 - the Crop Insurance Restoration Act, repeals the crop insurance reductions to honor the commitment Congress made to America's farmers in the 2014 Farm Bill.

Congressman Young said, "This is exactly why Iowans and the American people do not trust the process in Washington. The majority of Iowa farmers I speak to feel like they are under attack by their own government. Cutting crop insurance in the current agriculture economy is simply not smart, so my legislation restores those funds and keeps our promise to farmers.

"Rural America deserves to have a voice championing their priorities in Congress. I will work tirelessly to fight back against regulations from the Waters of the U.S. rule to proposed cuts to the Renewable Fuel Standard levels; this uncertainty is hurting our farmers and the agricultural industry," Young continued.

Earning for farmers is expected to drop 36 percent this year, according to the U.S. Agriculture Department. And with falling corn and soybean prices coupled with consistently high prices for land, seeds and other inputs fall farm incomes is a serious problem.

With that in mind, along with introducing The Crop Insurance Restoration Act, Congressman Young will kick off a "Bringing in the Harvest" agricultural tour on Friday, October 30.

Young will hear directly from producers about this year's harvest, the challenges they have faced and the outlook for the next year. He is going to a number of elevators and facilities in Iowa that day to hear directly from Iowa's experts on agriculture -- our farmers.

BACKGROUND on Crop Insurance
The federal crop insurance program was first implemented in 1938, and has since served as an important safety net for farmers. The Bipartisan Budget Act of 2015 uses the federal crop insurance program as an offset for higher discretionary spending caps. Specifically, it removes the 2014 Farm Bill requirement that the Standard Reinsurance Agreements be budget neutral. This was included to prevent the administration from cutting federal funding of the crop insurance program. In addition, the budget agreement also reduces the rate of return on retained premiums for crop insurers from 14.5% to 8.9%.

Farming is a risky business and farmers rely on this insurance program to help cover crop losses from disease, drought, excessive moisture, and freeze. This budget deal threatens to drive more private insurers out of business, ultimately hurting farmers.

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