Allocating Crop Insurance Subsidy Funds to Food Waste Tax Incentives

Allocating Crop Insurance Subsidy Funds to Food Waste Tax Incentives

Domestic Team 25

Executive Summary

The problem: Crop insurance, the largest farm subsidy program, not only disproportionately benefits the wealthiest farmers, but also leads to risky agricultural practices, surpluses, and ultimately food waste. While taxpayers are subsidizing rampant overproduction of commodity crops, 41 million Americans are experiencing hunger. 

Policy Recommendations:

1. Implement a $40,000 per-farm cap on crop insurance payments.

• This policy would save $2.02 billion each year, and only affects 5% of farms. 

• This policy has bipartisan support and affects the top 10% of farms by income. 

1. Use the $2.02 billion in savings to establish and fund the United States Farm to Fork Grant Program.

• $15 billion of food is wasted on farms each year.

• The Federal Government spent $5 billion in 2016 on crop insurance subsidies. 

• This program will award grant funds to government agencies and nonprofit organizations for food donation initiatives. 

• Applicants for funds must use the money to recover on-farm food waste and ensure that the food is redirected into low-income communities. 

This policy proposal aims to use tax dollars originally allocated for crop insurance subsidies more efficiently by implementing a cap on crop insurance payments. Most importantly, this money will be redirected into United States Farm to Fork Grant Program. Nonprofit organizations and governmental agencies can apply for funding for projects that redirect on-farm food waste into food-insecure communities. This program will use taxpayer money more efficiently and will help to reduce food waste by feeding millions of hungry Americans.