Projected to cost $100 billion in this decade alone, the Federal Crop Insurance Program is the most expensive program in the farm safety net, yet federal law prohibits the USDA from disclosing basic information about subsidy recipients. This week, Rep. Nancy Mace, R-Mt. Pleasant, was working hard to legislate and joined as a cosponsor of the Crop Insurance Transparency Act, H.R. 5747, led by Reps. Ralph Norman, R-Rock Hill, and Earl Blumenauer, D-Oregon. The measure would require USDA to publicly disclose the names of producers and insurers who receive federal crop insurance subsides and the amount received.
“We applaud Rep. Mace for joining this important legislation that will bring transparency and accountability to federal crop insurance programs and we call on House Agriculture Committee leaders to include the measure in the upcoming Farm Bill,” said Marty Irby, President at Competitive Markets Action, Board Secretary at the Organization for Competitive Markets. “Federal spending and farm subsidies are at an all-time high and it’s a shame to see the endless flow of taxpayer dollars funneled into the coffers of multi-millionaires while the average American family farmer reaps little to no benefit or reward.”
“One-third of all crop insurance subsidies never make it to farmers, but instead go to massive insurance companies. For the sake of transparency, it's time to shed some light on how these funds are utilized. After all, crop insurance ought to benefit our farmers, not the pockets of big insurance companies and their agents,” said Rep. Norman at the introduction of H.R. 5747.
The Crop Insurance Transparency Act:
- Requires the USDA to publicly disclose the names of producers who receive federally subsidized crop insurance, the amount of federal subsidy they received, and the federal portion of indemnities paid toward insured losses;
- Requires USDA to publicly disclose the names of private insurance providers that receive federal subsidies, the amount paid to cover company administrative and operating expenses, and the federal portion of indemnities and reinsurance costs.
