Federal Crop Insurance Subsidy Reduction Bill

[Ebowed]

Federal Crop Insurance Subsidy Reduction Bill

§1. Findings
   (a) Excessive subsidies of the Federal Crop Insurance program encourage the utilization of marginal land because of the reduction of moral hazard on the part of the producer.
   (b) The reduction of direct forms of agricultural subsidy has led to an increase in the usage of the Federal Crop Insurance program as an indirect subsidy.

§2. Reductions in Federal Crop Insurance subsidies
   (a) For the 2008 crop year, section 508(e)(2) of the Federal Crop Insurance Act [7 U.S.C. 1508(e)(2)] is amended as follows:
      (1) In subparagraph (A), the phrase "the premium" shall be replaced by "90 percent of the premium".
      (2) In subparagraph (B)(i), the phrase "67 percent" shall be replaced by "66 percent".
      (3) In subparagraph (C)(i), the phrase "64 percent" shall be replaced by "60 percent".
      (4) In subparagraph (D)(i), the phrase "59 percent" shall be replaced by "54 percent".
      (5) In subparagraph (E)(i), the phrase "55 percent" shall be replaced by "48 percent".
      (6) In subparagraph (F)(i), the phrase "48 percent" shall be replaced by "41 percent".
      (7) In subparagraph (G)(i), the phrase "38 percent" shall be replaced by "34 percent".
   (b) For the 2009 crop year, section 508(e)(2) of the Federal Crop Insurance Act [7 U.S.C. 1508(e)(2)] as amended by subsection (a) of this section is further amended as follows:
      (1) In subparagraph (A), the phrase "90 percent" shall be replaced by "75 percent".
      (2) In subparagraph (B)(i), the phrase "66 percent" shall be replaced by "60 percent".
      (3) In subparagraph (C)(i), the phrase "60 percent" shall be replaced by "54 percent".
      (4) In subparagraph (D)(i), the phrase "54 percent" shall be replaced by "48 percent".
      (5) In subparagraph (E)(i), the phrase "48 percent" shall be replaced by "42 percent".
      (6) In subparagraph (F)(i), the phrase "41 percent" shall be replaced by "36 percent".
      (7) In subparagraph (G)(i), the phrase "34 percent" shall be replaced by "30 percent".
   (c) For the 2010 and succeeding crop years, section 508(e)(2) of the Federal Crop Insurance Act [7 U.S.C. 1508(e)(2)] as amended by subsections (a) and (b) of this section is further amended as follows:
      (1) In subparagraph (A), the phrase "75 percent" shall be replaced by "60 percent".
      (2) In subparagraph (B)(i), the phrase "60 percent" shall be replaced by "50 percent".
      (3) In subparagraph (C)(i), the phrase "54 percent" shall be replaced by "45 percent".
      (4) In subparagraph (D)(i), the phrase "48 percent" shall be replaced by "40 percent".
      (5) In subparagraph (E)(i), the phrase "42 percent" shall be replaced by "35 percent".
      (6) In subparagraph (F)(i), the phrase "36 percent" shall be replaced by "30 percent".
      (7) In subparagraph (G)(i), the phrase "30 percent" shall be replaced by "25 percent".

§3. Already acquired insurance
   (a) Persons who have already acquired coverage under the Federal Crop Insurance program for the 2008 or any subsequent crop year prior to the passage of this Act shall either -
      (1) cancel the coverage and receive a full refund of any premium paid to date, or
      (2) pay a surcharge equal to the reduction in subsidy levels resulting from the passage of this Act.
   (b) Failure to indicate a choice by the beginning of the affected crop year shall be treated as if the covered person had elected under subsection (a) to cancel the coverage.
   (c) Covered persons may choose to cancel only a potion of their insurance and pay a surcharge on the remainder.


Sponsor: Sen. Ernest

[True Federalist (진정한 연방 주의자)]

Frankly, I'd like to get the government out of the crop insurance business altogether, but a sudden withdrawal would also cause problems because obviously farmers have made decisions as to purchases of equipment and land based on the assumption of subsidized crop insurance.  Thus this bill acts to start phasing out the subsidies over the 2008 to 2010 crop years and then gives a future Senate the chance to gauge the effect and decide whether the pace of withdrawal should be slowed or increased.

[Ebowed]

We're voting on final passage (bill is two posts up).

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Aye

[True Federalist (진정한 연방 주의자)]

Aye

[Everett]

Aye.

[Brandon H]

Aye

[Јas]

Aye

[Colin]

Aye

[Tetro Kornbluth]

Abstain in protest at continuing Farm Subsidy program.

[I spent the winter writing songs about getting better]

Aye

[Ebowed]

This bill has enough votes to pass.  Senators have 24 hours to change their votes.

[Ebowed]

With 7 ayes and 1 abstention, this bill has passed.  It is presented to the President for his signature.

[Ebowed]

Following 7 days of executive inaction, the bill has automatically become law.