Extreme Weather and Crop Insurance: Taxpayers Foot the Bill
A recent report sheds light on the increasing financial burden extreme weather places on the federal government and taxpayers. Crop insurance payouts, exceeding $118 billion between 2001 and 2022, reveal the staggering costs incurred due to droughts, heatwaves, and floods. This revelation comes from a study by the Environmental Working Group, indicating a growing impact of climate change on agriculture. As droughts ravage the Midwest and the Mississippi River basin faces increased precipitation, farmers turn to federal support to mitigate losses. The U.S. Department of Agriculture administers the crop insurance program, where taxpayers subsidize two-thirds of premiums paid by farmers. However, climate change exacerbates the situation, with heat-related crop failures alone witnessing a thousand percent increase in payouts from 2001 to 2022. The Midwest, especially Iowa, grapples with significant losses, ranking among the top states for drought and excess moisture-related indemnities. Yet, the consequences extend beyond financial burdens, impacting crop yields and agricultural practices. The report underscores the urgent need for adaptive measures and policy reforms to address the escalating costs of climate-induced crop failures.
SOURCE: Click here to read the full report in 'Investigate Midwest’
