Report Illustrates Impact of Crop Insurance Subsidy Caps

The National Sustainable Agriculture Coalition (NSAC) published an updated version of a special report projecting billions in taxpayer savings over 10 years if modest payment caps are instituted on subsidized discounts for farmers who purchase crop insurance. The updated report includes an addendum that features several projections demonstrating the real impact of payment caps outlined in the original report: An Economic Analysis of Payment Caps on Crop Insurance Subsidies, first published in July 2022. The addendum illustrates the minimal impacts that introducing a simple payment cap of $50,000 or a scaling limit based on value of production would have on farms. The example farms in Iowa, Montana, California, Arkansas, and Texas represent different ways that subsidies received would — or would not — change for various agriculture operations, including corn and soybean, wheat, rice, cotton, and mixed farms of varying sizes and coverage levels.