Successful Farming’s Chuck Abbott reported Tuesday that “the federally subsidized crop insurance program will cost an additional $27.7 billion over the coming decade, said the Congressional Budget Office in projections released on Monday. The government pays roughly 62¢ of each $1 in premiums, and sales of livestock and forage policies are exploding.”
“Crop insurance costs are estimated to rise by 29% to nearly $125 billion for the decade ending in 2033,” Pro Farmer Editors reported. “Despite this increase, USDA spending on crop and livestock subsidies and land stewardship programs is expected to remain stable.”
While crop insurance costs are projected to increase, the Senate Ag Committee wrote that projected costs for all farm bill-related programs are now “at $1.46 trillion over the 10-year window from fiscal years 2025 to 2034 – down 3.5% from the previous 10-year baseline of $1.5 trillion.”
Crop and Livestock Subsidy Costs
Abbott reported that, “in recent years, crop insurance has become the largest strand in the farm safety net. The government has paid $15.6 billion in indemnities so far on losses for 2023 production. Commodity supports would cost marginally less in the decade ahead because crop prices would be stronger in the decade ahead than expected a year ago.”
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Categories: Illinois, Crops, Livestock