Farmers would receive 40 percent more in net farm income under the Lugar plan. According to the report, the Roberts-Kerrey bill encourages producers to increase their crop insurance coverage by increasing premium subsidies and thereby making higher levels of coverage more affordable. The report warns that this lower cost of risk to a farmer could induce additional production in higher risk areas and thereby lower prices. The independent Food and Agricultural Policy Research Institute is jointly housed at the University of Missouri and Iowa State University and receives part of its funding from the U.S. Department of Agriculture. My farmer-choice plan makes direct payments to farmers if they agree to utilize risk management strategies.
Farmers can select the approach that works best for their farm or region of the country.
This includes choosing crop insurance if they wish, Lugar said.