Aid Is a Bumper Crop for Farmers

Created by : Francis Goodwin View profile
  By Gilbert M. Gaul, Dan Morgan and Sarah Cohen -- Washington Post

  Oct. 15, 2006 -- In the spring of 2000, Congress decided to do something about its costly and politically driven practice of giving farmers a disaster payment each time a storm damaged their crops.

  The lawmakers voted to use $8 billion in new taxpayer subsidies to help farmers buy crop insurance to protect them against losses. The insurance would replace the disaster payments and reduce government costs.

  But shortly after passing the Agricultural Risk Protection Act, Congress lost its fiscal will. One week before the presidential election, it passed a new $1.8 billion disaster bill to assist farmers hurt by bad weather. Two others followed in subsequent years, totaling more than $6 billion. Today, after a searing drought in the Plains, farm-state legislators are pushing for billions more in aid.

  The result is that farmers often get paid twice by the government for the same disaster, once in subsidized insurance and then again in disaster assistance, a legal but controversial form of double-dipping, a Washington Post investigation found. Together, the programs have cost taxpayers nearly $24 billion since 2000.

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  • Date range
    Monday, October 16, 2006
  • Last modified
    Wednesday, November 06, 2013