The House Agriculture Appropriations Subcommittee last Wednesday approved an $18.4 billion discretionary spending bill with language that would forbid the sale of discounted crop insurance for the second straight year. The package includes a controversial provision that would stop the sale of insurance utilizing the Premium Reduction Program (PRP) from July 1, 2007, to June 30, 2008. Last year’s measure blocked the sale for a one-year period starting this July 1. The issue will ultimately have to clear the House/Senate conference committee before it could become law.

“In suspending funding for Premium Reduction Plans (PRPs) in 2007, Congress questions the need for PRPs as an alternative to fully regulated federal crop insurance Standard Reinsurance Agreement (SRA) entities,” noted PIA in a meeting on April 7, 2006 with Eldon Gould, administrator of the USDA’s Risk Management Agency (RMA). “PIA supports Congress’ concerns.”

PIA Crop Insurance Position Paper (PDF file, 3/06)

May 9, 2006