May 14, 2007
RISK MANAGEMENT-ORIENTED BILL INTRODUCED
U.S. Reps. Ron Kind (D-Wis.), Jeff Flake (R-Ariz.), Joe Crowley (D-N.Y.), and David Reichert (R-Wash.) introduced on May 10 the Food & Agriculture Risk Management for the 21st Century Act (FARM 21).
Under this proposal, the current system of farm subsidies – counter-cyclical, loan deficiency, income loss, and direct payments – would gradually be transitioned to a system of farmer-held “risk management accounts” and revenue insurance tools.
The lawmakers say the proposed reforms would yield a farmer safety net that is estimated to cost nearly $20 billion less over five years and $55 billion less over 10 years than the likely budget allocation and baseline estimates of the existing farm subsidies.