Obama budget proposes crop insurance cuts
The Obama administration released the president’s proposed federal budget for fiscal 2015 last week, including a 10-year, $14 billion cut to the federal crop insurance program. The cuts would come from the producer premium subsidy, the level of retained earnings for insurance companies and agent compensation. The president’s budget proposes a $23.7 billion budget for the Agriculture Department in fiscal 2015. This is a $938 million reduction from the U.S. Department of Agriculture’s fiscal 2014 budget.
While the budget is widely considered to be "dead on arrival" in Congress, farm groups expressed concern about the symbolism of proposed cuts to crop insurance and food inspection budgets. The proposed budget also calls for closing or consolidating 250 Farm Service Agency offices nationwide and creating service centers to replace them.