An insurance provision in the U.S. farm bills proposed by the House and Senate could have corn, soybean, and wheat farmers making more money in a bad year, such as during a drought, than in a good year, an environmental group said on Thursday
In a 20-page report, the Environmental Working Group criticized the proposed Supplemental Coverage Option (SCO), which is in both the House and Senate versions of the Farm Bill, claiming it would have increased crop insurance payments during last year's drought by $6.8 billion on top of the record $17 billion that was paid out.
A corn farmer in central Illinois during that drought would have had crop revenue of about $1,300 a acre, or $200 an acre more than he had expected at planting time, said agricultural economist Bruce Babcock of Iowa State University.
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