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Farm Bill May Include Crop Insurance Reductions

House Ag Committee Chairman Collin Peterson, D-Minn., suggests cuts in crop insurance programs could help pay for increases in other parts of the farm bill.

Rep. Collin Peterson, D-Minn., Chairman of the House Agriculture Committee, told reporters Friday that he will propose cuts in crop insurance in order to fund increases in other parts of the farm bill.

Although Peterson did not specify how large the cuts would be, he says that between those cuts and some farm bill tinkering, the committee may come up with an extra $3 billion to use in other programs.

Some of that money could go to help fruit and vegetable growers, Peterson suggests, and he noted needs in conservation and nutrition programs.

Some of the money might come from reducing payments made to the insurance companies that the government works with. A Government Accountability Office report has suggested that the government may overpay the companies for administrative and operating costs.

Because of high commodity prices, Peterson says, those insurance companies will be making significantly more money this year.

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