President Trump’s proposed FY2018 budget calls for about $28 billion in cuts to the Federal Crop Insurance Program (FCIP) over the 2018-2027 period.

While budget proposals are rarely enacted exactly as planned, they serve as a blueprint for an Administration’s priorities. The Big “I” strongly opposes the cuts, as well as caps proposed in the President’s budget. The cuts fall into the three main categories:

1) The budget sets premium assistance caps at $40,000, for a savings of $16.2 billion over 10 years. The U.S. Senate proposed such a cap on premium subsidies during the last farm bill, but it was defeated partly because of the strong grassroots pushback from Big “I” agents.

2) The Administration calls for an adjusted gross income limit for crop insurance of $500,000, which is expected to save $420 million over 10 years.

3) The budget calls for eliminating the harvest price option for crop insurance, for a savings of $11.924 billion. 

The Big “I” was a leader in opposing these cuts when they were proposed as standalone bills. In a joint statement supported by the Big “I,” the association noted that “lawmakers favor crop insurance because it reduces taxpayer risk exposure and has come in under budget since the 2014 Farm Bill was passed. Farmers are willing to help fund their own safety nets – collectively spending $50 billion out of their own pockets on crop insurance since 2000 – because they know private-sector efficiency will speed aid when it is needed most.”

The association opposes attempts to limit farmer participation in the crop program and reduce resources for the timely and effective private delivery of crop insurance to farmers and ranchers across the country. Big “I” agents are uniquely knowledgeable about the details of the FCIP, and they are dedicated to timely delivery of efficient and effective service to the farmers they serve. Crop insurance is a risk management tool; the program is fiscally sound and shields taxpayers from ad-hoc disaster payments.

The Big “I” looks forward to engaging in meaningful conversations with members of the Agriculture Committee in both congressional chambers to reaffirm strong support for crop insurance.

Jen McPhillips is Big “I” vice president of federal government affairs.