Senator Jeff Flake (R-AZ) and Congressman John Duncan (R-TN) have introduced the Crop Insurance Subsidy Reduction Act (S. 446 and H.R. 943) that would return federal crop insurance premium subsidies to their pre-Agriculture Risk Protection Act (ARPA) levels of 2000. Flake said USDA data shows that taxpayers have spent $7.1 billion in 2012 on federal crop and revenue insurance premium subsidies for farmers, up from $1.4 billion in 2000.
Congressman Duncan said, “The crop insurance program has turned into a huge taxpayer-funded boon for some of the biggest, multi-national insurance companies and multi-millionaire farmers. In a time of record deficits and an incomprehensible $16.5 trillion in debt, this program can no longer be justified in its current form.” He also said that currently producers pay 34% of the premiums and the federal government pays 66% of the premiums. Those supporting the legislation include the Environmental Working Group, Club for Growth, Americans for Prosperity, Americans for Tax Reform, Campaign for Liberty, Center for Individual Freedom, Competitive Enterprise Institute, Cost of Government Center, Council for Citizens Against Government Waste, National Taxpayers Union, Taxpayers for Common Sense and Taxpayers Protection Alliance.
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