New US crop insurance plan to save billions
Proposal caps payments
A new crop insurance plan would save $6 billion over 10 years according to an Associated Press report. The U.S. Department of Agriculture released the final draft of the plan, which projects reduced savings from its original proposal that saved $8.4 billion.
To realize savings, the plan cuts windfall government payments set off by sharp commodity price spikes. Crop insurance company administration and overhead expenses would be capped under the plan, but long-term return for these firms is projected at about 14.5%.