By Art Barnaby
Kansas State University Department of Agricultural Economics
The Trump Administration is proposing crop insurance cuts, similar to the ones proposed earlier by Reps. Jim Sensenbrenner (R-Wis.) and Ron Kind (D-Wis.) and by Sen. Jeff Flake (R-Ariz.). Both proposals include the elimination of the Harvest Price Option, a limit on AGI and a $40,000 limit on the government’s share of the premium. Once a farmer hits the $40,000 limit, the farmer would pay 100 percent of the premium cost for any covered acres above that level.
The $40,000 crop insurance “subsidy” cap results vary by county and by year. In Kansas in 2016, it required from a low of 1,166 acres to a high of 3,619 acres to hit the $40,000 cap, i.e. the government’s share of the premium costs, depending on the year and county. By contrast, in California the range was from 149 acres to 7,556 in a county to hit the limit. However, in most cases, these outliers were based on very few insured acres in the county. Therefore, these county acre limits were capped at 200 acres and 6,000 acres.
Read more here.
Kansas State has also published a map that estimates how much acreage a producer would need to reach the cap.