Budget deal by U.S. Congress cuts crop insurance

By Ed Tibbetts, Quad City Times

The proposed two-year federal budget deal includes a $3 billion cut to crop insurance that is drawing complaints from farm states.

U.S. Sens. Chuck Grassley and Joni Ernst, both Iowa Republicans, criticized the cuts Tuesday, which were included in a deal that would boost spending by $80 billion over two years, not including war funding. The agreement also would raise the nation's debt limit through early 2017.

The deal, reached by the White House and Republican leaders in Congress, would raise for a couple of years the spending caps that were set as part of a 2011 congressional agreement.

Those caps, which extend to 2021, have caused much consternation for advocates of domestic programs and the military. The additional spending in this new deal would be split evenly between the military and domestic programs.

On a call with reporters Tuesday, Ernst said she is disappointed in the agreement and will likely vote against it.

'I don't think this is what Iowans want,” she said. 'I don't think this is what Americans want. They want to see us get rid of the reckless spending in Washington, D.C.”

Details of the deal were posted late Monday.

The additional spending would be achieved by cuts in several other parts of the budget, including Medicare payments to health care providers and in Social Security's disability program. It also would raise revenues with stricter tax compliance measures.

The crop insurance cuts, which would come over 10 years, are achieved by cutting the rate of return for insurers from 14.5 percent to 8.9 percent. Ag state lawmakers say the change undermines the farm bill that was passed last year and that pushed farmers toward more reliance on crop insurance.

Critics of the program say crop insurance is heavily subsidized.

Grassley, however, said the program has already sustained cuts and it keeps taxpayers from having to pay for disaster assistance. Grassley said he hadn't decided yet how he would vote.

'While this bill will importantly help avoid a shutdown, my biggest question is what it does about the long-term fiscal health of the country,” he said in a statement.

Despite her misgivings, Ernst predicted that the bill would pass. The bill was being attacked Tuesday by some conservatives, who want to take a more aggressive tack toward spending.

Rep. Dave Loebsack, Iowa's only Democrat in Congress, expressed concern over some parts of the deal, spokesman Joe Hand said. But he did not say whether it met with his approval.

For the measure to pass in the House, votes from Democrats will be needed.