U.S. Considering Insurance Rather than Subsidies

The shape of the 2012 U.S. Farm Bill has been a subject of discussion around the world — ever since the previous bill in 2008 — and while nothing is certain yet, it appears that support for cotton subsidies might be shifting domestically. Given the country’s massive deficit, there will be heavy political pressure to cut subsidies, so cotton professionals and national associations are shifting their focus to implementing a revenue-based insurance program.

It’s already been established as a major agricultural trend in the United States, leaving rice as the only remaining commodity that isn’t at least considering a shift to a revenue insurance program, according to an article published on www.desmoinesregister.com.

Both the National Cotton Council and Iowa Farm Bureau are advocating a shift from direct annual payments to a program that would provide cotton farmers with direct insurance payments of $53 per acre – significantly higher than the $22 per acre corn farmers receive.