Why is Shallow-Loss Crop Insurance Bad?
The Farm Bill, which is currently in the Senate, replaces direct payments to farmers with a new crop insurance program known as shallow-loss. With the addition of shallow-loss, the government now guarantees 90% of revenue for farmers, no matter what happens to their crop. What other industry gets a profit guarantee from the government?
One farmer broke down exactly what that means for his profits:
“‘When you can remove nearly all the risk involved and guarantee yourself a profit, it’s not a bad business decision,’ said Darwyn Bach, a farmer in St. Leo, Minn., who said that he is guaranteed about $1,000 an acre in revenue before he puts a single seed in the ground because of crop insurance. ‘I can farm on low-quality land that I know is not going to produce and still turn a profit.’”
Great! While the American people are suffering from stagnant wages, a crushing national debt and high unemployment, our tax dollars are being given to people who purposefully make bad business decision because they know no matter what they do they’ll make money!