On the recordJune 19, 2013
I thank my colleague for yielding. As the House considers the FARRM Act of 2013, I believe it's important that we offer the proper support for farmers, while ensuring that these support programs are responsible for the American taxpayer. As you may know, the Federal Crop Insurance Program is the most expensive government program supporting farm income and is the only farm income support program that is not subject to some form of payment limitation or means testing. This amendment, which incorporates the language in the AFFIRM Act that Representative Kind and I introduced last month, works to reform the crop insurance program. Capping crop insurance subsidies at $50,000 per person per year does not prohibit farmers from purchasing crop insurance, nor does it eliminate all taxpayer support for the program. In fact, most farmers would not be affected by this cap at all. According to the GAO, in 2011, only 4 percent of farmers would have been impacted by this $50,000 cap on subsidy for insurance. For 2001 to 2012, the total cost of premium subsidies jumped fourfold, from $1.8 billion to $7.5 billion. The Congressional Budget Office projects even higher costs in the future, averaging $9.1 billion annually. The subsidy cap, combined with the $250,000 means testing requirement, will assist in preventing fraud, waste and abuse in the Federal Crop Insurance Program. The Acting CHAIR. The time of the gentleman has expired.
