AACI SENATE FARM BILL ACTION ALERT: CALL SENATORS MONDAY, JUNE 11 U.S. CAPITOL SWITCHBOARD: 202-224-3121
ASK YOUR SENATORS TO VOTE "NO" ON:
DURBIN/COBURN Amendment (Farm Bill Amendment # 2186)
GILLIBRAND Amendment (Farm Bill Amendment # 2156)
Other Farm Bill Amendments that CUT, CAP or LIMIT crop insurance
DURBIN/COBURN AMENDMENT: The Durbin/Coburn amendment reduces premium support 15 percentage points below the amount normally provided for farmers with AGI in excess of $750,000. This change imposes a 25 percent reduction in premium support for these farmers.
You should make the following points to your senators about the Durbin/Coburn amendment:
1. The long-standing program goal is to sell crop insurance to all farmers equally, regardless of what they produce, where they produce, the size of their operation, or the income of their operation. A means test for producer support would violate this fair and successful program principle of equal opportunity.
2. Crop insurance is purchased by farmers from private sector agents and companies. Farmers write checks for their premiums. Farmers, small or large, do not receive subsidy checks.
3. Farm lenders have stated their opposition to any amendments that would limit participation in the program by farmers, including efforts to impose means testing on fanners.
4. Crop insurance is dependent on having a large number of farmers participate. When risks are pooled across a large number of farmers, rates are lower because losses are spread across many farms.
5. Crop insurance works for small farmers because it includes premium of many low-risk large farmers. Premium would be forced higher for small farmers because fewer large farmers would participate.
GILLIBRAND AMENDMENT: The Gillibrand amendment restores food stamp cuts of $4.5 billion included in the Senate Farm Bill, but it cuts crop insurance delivery budget $5 billion to pay cost of the amendment. Senator Gillibrand's budget offset would cut agent commissions at least another 37 percent (a minimum of $475 million), reducing the cap amount to $825 million and unilaterally redefine and label the target rate of return as "guaranteed profits" and lower that rate by two full percentage points, cutting it from 14 percent to 12 percent. Current level of net returns already threatens the continuation of private capital in the program.
You should make the following points to your senators about the Gillibrand amendment:
1. It must be properly delivered for farmers to have effective risk management protection.
2. Delivery cost was cut in the 2008 farm bill and again in 2011 SRA.
3. Crop insurance was cut $4 billion in the 2011 SRA for deficit reduction.
4. Companies and agencies have already reduced staff as a result of those cuts.
5. Additional cuts will result in further loss of jobs in rural America.
6. Any company return statistic incorporated in the SRA is a target value, not a guarantee.
7. The reference to a 14 percent target return is defined as a gross, not a net value.
8. Additional cuts will force less service to farmers in high cost, high risk states.
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