CGB News

Tell your leaders to oppose legislation that could weaken crop insurance!

Author: SuperUser Account/Wednesday, October 28, 2015/Categories: CGB News

***URGENT***
Please contact your Congressman and both U.S. Senators now and tell them that you strongly oppose the provision in the proposed budget deal that would weaken crop insurance.  Urge them to strip out Section 201 from the budget deal.

BACKGROUND INFORMATION
 
Budget Deal
 
The proposed bill would increase spending limits for two years, $50 billion for fiscal year (FY) 2016 and $30 billion for FY 2017 and equally divided between defense and non-defense programs. The bill is deficit neutral because the increase in spending is offset by cuts and changes to mandatory programs, including crop insurance.   
 
Impact on Crop Insurance
 
Section 201 of the bill takes $3 billion from the private sector delivery system by capping a rate of return at 8.9 percent. The cap authorized in the Farm Bill is at 14 percent. The language also requires a new Standard Reinsurance Agreement by the end of 2016. 
 
This drastic change in return could drive companies out of crop insurance.
  
You can locate contact information for your congressional delegation at this web link: http://www.contactingthecongress.org/
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