LYONS, Neb. — The time has come for crop insurance reforms that place greater emphasis on soil and water conservation and “real” limits on subsidies to the nation’s largest farms, according to a new report by the Center for Rural Affairs (CFRA).

In addition, the federal government must take more steps to ensure that subsidies paid to recipients are as transparent as possible, said Terry Bruckner, senior policy analyst for the CFRA.

“We’ve heard from farmers across the Midwest and Great Plains about the negative impacts of federally subsidized crop insurance for over a decade. A farm safety net is important to help family farmers mitigate risks, but there are real concerns with the current crop insurance program. The best way to begin addressing those concerns is through honest and forthright assessment of the crop insurance program,” Bruckner said.

To that end, CFRA began its Crop Insurance Reform Initiative this spring and recently issued a “report card” assigning the federal crop insurance program a failing grade encompassing six categories of performance: reliability, transparency, support it provides beginning farmers, emphasis on crop diversity, efficient use of taxes and conservation of soil and water.

“This report card is our earnest effort to get that assessment started. And this is just the beginning – we will have more analysis, and more recommendations for reform coming out in the coming weeks and months,” Bruckner added.

“By displaying this assessment of crop insurance in a format that everyone is familiar with, we hope to simplify a set of complicated issues and attract the general public to join us in pushing for reforms.”

Performance grades assigned to the 2014 farm bill crop insurance system by CFRA range from “B” to several grades of “F.” In overall performance, crop insurance received a failing grade. The following is a summary of grades and commentary issued by CFRA:

•Reliability: B (Provides a very reliable income for mega-farms and insurance companies)

•Transparency: D (No information on how much is received each year)

•Supports Beginning Farmers: D (A little, but not at the rate it helps mega-farmers)

•Encourages Crop Diversity: D (The new Whole Farm Revenue program should help improvements on this front)

•Saves Taxpayers Money: F (Supports mega-farms growing larger on the taxpayer’s dime)

•Conserves Soil and Water: F (Minimal to no conservation requirements)

“We’re disappointed to see crop insurance is still failing beginning, small and mid-sized farmers,” CFRA stated in summary. “It consistently encourages mega-farms (to) stomp out their smaller neighbors.”

The center’s report card does not stop with its criticism of the crop insurance program under the latest farm bill. An accompanying policy brief provides further analysis and describes reforms that it believes could be enacted to improve the performance of the insurance system.

“We want to stress that the crop insurance system needs some serious reforms before we can honestly say this is a real safety net that deserves to advance, as is, in the next farm bill debate.

“The impact crop insurance will have on future years of farming practices is significant, making reform of the federally subsidized crop insurance system vitally important to the future of rural and small-town America,” Bruckner concluded.

“Subsidizing the nation’s largest and wealthiest farms on every acre, every year, regardless of crop prices, production or farm profitability, puts America’s natural resources at risk. And, absent reform, crop insurance gives mega-farms an advantage in bidding up land costs, driving their smaller neighbors out of business and preventing the next generation of farmers from ever getting started.”

To view or download the CFRA Crop Insurance Report Card and policy brief, go online to www.cfra.org/crop- insurance-report-card