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So is most insurance, subsidized. A big disaster, federal assistance comes out - FEMA etc. Billions. The better part of a trillion in the last decade. The exi

So is most insurance, subsidized. A big disaster, federal assistance comes out - FEMA etc. Billions. The better part of a trillion in the last decade. The existence of small programs is true. But negligible in big picture - one or two pennies from the pocket of the consumer annually.

giantg2 3y ago
Generally, FEMA is not an insurance program, one does not pay premiums through them, and the uses of the money are restrictive compared to regular insurance. "one or two pennies from the pocket of the consumer annually." Small producers take about 10% of commodity crop subsidies (not counting other types), which is about $1B per year. So no, not pennies per person. A better measure would be on a per acre basis.
- JoeAltmaier 3y ago
  Failure of insurance to span pervasive damage results in federal assistance in the form of FEMA loans etc. Three or four hundred billions of dollars in the last ten years. I used them as an example of how normal insurance doesn't cover disaster, and it costs us all dearly. I had the small producer at 1%. I'll have to look again.
  - giantg2 3y ago
    The numbers vary depending on the accounting. Most of the articles are focusing on a single aspect, commodity crop pricing, crop insurance, or even state-level programs. Then it depends on what size you're drawing the line for small vs large (is it even acreage based or are they using revenue, etc). At least in my experience, a lot of small farms are taking advantage of state-level programs, equipment grants, etc more than stuff like the CCC (which is more an indirect benefit to the small producers, but where a lot of the money goes). The equipment grants/loans can be tricky since you may only need one every decade or so, so it's not showing up in every year's reporting. For example, the dairy farm down the street recieved an environmental grant (state level I believe) for manure processing equiptment and lagoon. They are a medium sized operation - family run, under 200 acres, under 200 cows. Without the grant they couldnt afford the equiptment and they'd be closed down. I know several small farms that take advantage of wildlife/environmental/price-control crop programs where they make more money - no need get insurance since it's not for harvest, no need for fertilizer, etc. But of course what's really making ends meet for the small farms is that someone in the family needs a "real" job for a stable base income and health benefits.

giantg2 3y ago

Generally, FEMA is not an insurance program, one does not pay premiums through them, and the uses of the money are restrictive compared to regular insurance. "one or two pennies from the pocket of the consumer annually." Small producers take about 10% of commodity crop subsidies (not counting other types), which is about $1B per year. So no, not pennies per person. A better measure would be on a per acre basis.

JoeAltmaier 3y ago
Failure of insurance to span pervasive damage results in federal assistance in the form of FEMA loans etc. Three or four hundred billions of dollars in the last ten years. I used them as an example of how normal insurance doesn't cover disaster, and it costs us all dearly. I had the small producer at 1%. I'll have to look again.
- giantg2 3y ago
  The numbers vary depending on the accounting. Most of the articles are focusing on a single aspect, commodity crop pricing, crop insurance, or even state-level programs. Then it depends on what size you're drawing the line for small vs large (is it even acreage based or are they using revenue, etc). At least in my experience, a lot of small farms are taking advantage of state-level programs, equipment grants, etc more than stuff like the CCC (which is more an indirect benefit to the small producers, but where a lot of the money goes). The equipment grants/loans can be tricky since you may only need one every decade or so, so it's not showing up in every year's reporting. For example, the dairy farm down the street recieved an environmental grant (state level I believe) for manure processing equiptment and lagoon. They are a medium sized operation - family run, under 200 acres, under 200 cows. Without the grant they couldnt afford the equiptment and they'd be closed down. I know several small farms that take advantage of wildlife/environmental/price-control crop programs where they make more money - no need get insurance since it's not for harvest, no need for fertilizer, etc. But of course what's really making ends meet for the small farms is that someone in the family needs a "real" job for a stable base income and health benefits.