Farmers' safety net is now a money bag

Designed as a safety net, crop insurance was meant to cushion farmers from the multitude of risks that farming is famous for, from hailstorms to floods, the Star Tribune reports. But now, about 80 percent of the country's crop insurance policies are revenue policies, protecting farmers not only from weather and yield losses, but also from drops in prices.

Author:
BMTN Staff
Updated:
Mar 8, 2018
Original:
Jul 5, 2012

Designed as a safety net, crop insurance was meant to cushion farmers from the multitude of risks that farming is famous for, from hailstorms to floods, the Star Tribune reports. But now, about 80 percent of the country's crop insurance policies are revenue policies, protecting farmers not only from weather and yield losses, but also from drops in prices.

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Federal government aid has long served as a safety net for family farmers. But given recent increases in crop revenues, Congress could end the program that pays farmers money whether crop prices are high or low.

Lawmakers are looking to cut costs in the new farm bill. Minnesota Congressman Collin Peterson says much of the savings will come from replacing direct subsidies with an insurance program. The crop insurance will subsidize farm income if commodity prices fall below certain levels.

Regardless of the conditions, farmers have little choice but to begin harvesting when their corn, soybeans or other crops are ready. Farmers are being urged to keep a fire extinguisher, water and shovel with them in the fields.

The Minnesota Department of Natural Resources is warning farmers across the state to take precautions as they begin the fall harvest of their crops because the dry conditions could present fire hazards. The DNR says fires can be sparked by equipment in dry fields, so they urge farmers to prep their machinery to avoid overheating and sparks.

The New York Times went to Lindstrom to explore the sometimes contradictory feelings many Americans have about the country's safety net of government programs. The paper found that even some Minnesotans who say they want less government find themselves increasingly reliant on programs like Medicare and free school lunches.

A thunderstorm collapsed a silo and barn near Colby Thursday, and a farmer working inside was able to slip out with his life, the Marshfield News Herald reports. About 20 dairy cows were trapped in the rubble. The National Weather Service says 70- to 80-mph winds likely did in the structure.

While a dry summer has wreaked havoc on Minnesota's farmers, pumpkin farmers are still seeing a bumper crop this fall. Several farms in the state are reporting a high yield just in time for Halloween.

The Pioneer Press reports the median net farm income was up one percent to hit a record $123,000 last year. Crop farmers were "still very profitable," but saw a slight decrease despite record-high crop prices. The dairy sector as well as hog and beef producers all saw improvements, according to the annual report released Wednesday.

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