President Trump released his FY2021 budget on Monday and, as expected, it includes significant cuts to the Federal Crop Insurance Program (FCIP). The Big “I” opposes these cuts to the FCIP and—along with its crop insurance coalition partners—issued a statement opposing these dangerous reductions.
While budget proposals are rarely enacted as proposed, they serve as a blueprint for an administration’s priorities going forward. That said, this budget proposal would cut the U.S. Department of Agriculture discretionary spending by 8.2% and the FCIP by almost $25 billion.
The cuts for the FCIP fall into three main categories:
- A reduction in premium subsidies for a cut of $21 billion over 10 years.
- A 12% cap on underwriting gains for a cut of $3 billion over 10 years.
- An adjusted gross income (AGI) limit for crop insurance of $500,000 for a cut of $652 million over 10 years.
The Big “I” has been an industry leader in opposing reductions to the FCIP and the vital services it provides. In the statement issued by the coalition, it notes that “It’s inexplicable as to why the U.S. Office of Management and Budget would target such a critical risk-management tool for budget cuts. The proposed cuts will make crop insurance unaffordable and unavailable for farmers, seriously undermining the farm safety net.”
The Big “I” will continue to engage the Trump Administration and Congress on the importance of the FCIP and the critical safety net it provides for our farmers and communities.
Joseph Cortina is Big “I” director, federal government affairs.