Associated Press / By PHILIP BRASHER, AP Farm Writer / March 2, 2000
WASHINGTON (AP) - Senators from the Plains states pushed legislation through a committee Thursday that would sharply reduce the premiums that farmers pay for federally subsidized crop insurance.
The measure, which is similar to legislation approved by the House last year, would likely cost taxpayers at least $1.5 billion a year.
The Senate Agriculture Committee split along regional lines in approving the bill 10-8, as some southern and northeastern members complained that it wouldn't do enough for farmers in their states. The insurance is most popular on the Great Plains, where farmers are especially vulnerable to drought and hail. Many producers in the East and South say the policies aren't worth the cost.
The legislation's supporters insisted it will help farmers everywhere in the country by making the coverage more affordable.
Farmers "want a crop insurance system that works and provides an adequate return on their investment," said Sen. Pat Roberts, a Kansas Republican who cosponsored the bill with Sen. Bob Kerrey, D-Neb.
The government currently pays from 13 percent to 57 percent of a farmers' premium, depending on the level of coverage. Under the Senate bill, the government's share would range from 45 percent to 60 percent. Under the House measure, the government would pay from 31 percent to 67 percent.
Both measures also would improve coverage for farmers who have had a series of losses and expand coverage to more specialty crops. But the Senate legislation omits a provision sought by southern lawmakers that would allow grower cooperatives to sell the policies in competition with insurance companies.
Both bills are in line with what the Agriculture Department has suggested Congress do.
The chairman of the Senate committee, Indiana Republican Richard Lugar, held up the legislation for months, warning that deep cuts in premiums would encourage farmers to step up production of crops that are already in surplus.
He proposed to give cash directly to farmers to spend as they choose, but he was unable to muster much support for his idea on the committee. The bill approved by the committee did little to help farmers on the east or west coasts, he said.
Last year, Congress agreed to set aside $6 billion in 2001 through 2004 for improving the insurance system. That spending authority could end, however, if the insurance legislation is not passed by the time Congress revises its budget plan later this year.
Farm groups are pushing lawmakers to finish work on the bill before the money is spent on other purposes. "There's $6 billion sitting out there. We're afraid someone is going to nab it," said Mary Kay Thatcher, a lobbyist for the American Farm Bureau Federation.
The bill now goes to the full Senate for consideration.:
