Mar 16, 2012 - ITOCHU Co., ZEN-NOH Grain Corp.*. Japan. $55,173,858. Deere and Company. USA. $42,218,927. Fairfax Financ
FARM BILL BRIEFING MARCH 16,2012 SCOTT FABER VICE PRESIDENT FOR GOVERNMENT AFFAIRS
CRAIG COX SENIOR VICE PRESIDENT FOR AGRICULTURE AND NATURAL RESOURCES
Consumers want healthy food, clean environment Healthy food
78%
Right direction
Don’t know
39%
19%
Clean water Wrong track
69% Source: Environmental Working Group, David and Lucile Packard Foundation Survey, The U.S. Farmers and Ranchers Alliance Survey
42%
$ Billions
-$1.25
-$2.5
-$3.75
-$5.0
Source: Environmental Working Group, Compiled from Appropriations Committee Reports
20 12
20 11
20 10
20 09
20 08
20 07
20 06
20 05
20 04
20 03
Authorized Level
20 02
Cumulative conservation funding cuts
While farm insurance funding grows
$9.0
$ Billions
$6.75 $4.5 $2.25
Source: Environmental Working Group, Compiled from USDA Risk Management Agency data.
20 11
20 10
20 09
20 08
20 07
20 06
20 05
20 04
20 03
20 02
$0
Crop insurance spending
13%
16%
71%
Farmers
Source: Environmental Working Group, Compiled from CBO March 2012 baseline
Agents
Companies
Cost of farmer premium subsidies soaring $8.0
$ Billions
$6.0 $4.0 $2.0
Source: Environmental Working Group, Compiled from USDA Risk Management Agency data.
20 11
20 10
20 09
20 08
20 07
20 06
20 05
20 04
20 03
20 02
$0
Insurance premiums cost more than direct payments Premium subsidies per acre Direct payment per acre
$100
$50 $25
er s Su n
flo w
s
ce
So yb ea n
So r n ai Gr
Source: Babcock, Bruce. 2011. The Revenue Insurance Boondoggle.
Ri
m gh u
on tt Co
rn Co
la no Ca
Ba r
le y
$0
W he at
$ Per acre
$75
Farm returns remain high even without premium subsidies Corn yield
197 bushels/acre
Corn Price
$4.80/bushel
Gross revenue from corn
$946/acre
Inputs and overhead
$453/acre
Return with premium subsidy (Insurance cost $26/acre)
$467/acre
Return without premium subsidy (Insurance cost $54/acre)
$439/acre
Source: Environmental Working Group. Compiled from University of Illinois “Farmdoc”.
Counties: 2010 direct payments
Source: Environmental Working Group
Counties: 2010 premium subsidies
Source: Environmental Working Group
Insurers got big payments 2007-2011 Parent Company
Location
Subsidy
Wells Fargo
USA
$1,719,837,457
ACE Ltd
Switzerland
$1,536,256,921
QBE Insurance Group
Australia
$1,001,181,585
American Financial Group
USA
$661,789,678
Endurance Specialty Holdings Ltd.
Bermuda
$446,276,121
Farmers Mutual Hail Insurance Co.
USA
$281,069,186
Service Lloyds Insurance Co.
USA
$386,814,721
XL Group LTD
Ireland, Bermuda
$225,183,659
Farm Bureau
USA
$247,321,484
Ohio Farmers Insurance Company
USA
$105,434,070
American International Group of Companies
USA
$80,923,916
Archer Daniels Midland Co.
USA
$80,068,012
Illinois Agricultural Association
USA
$69,784,648
ITOCHU Co., ZEN-NOH Grain Corp.*
Japan
$55,173,858
Deere and Company
USA
$42,218,927
Fairfax Financial Holdings Ltd.
Canada
$56,776,733
IAT Reinsurance Company, Ltd
Bermuda
$19,209,189
Department of Agriculture, Commonwealth of Puerto Rico
Puerto Rico
$9,591,903
Austin Mutual Insurance Company
USA
$41,555,252
American Sheep and Goat Center
USA
$350,807
Total
$7.1 Billion
*Not a direct beneficiary but the managing general agent for Austin Mutual Insurance Company is CGB Diversified Services which is owned by ITOCHU Co. and ZEN-NOH Grain Corp. Source: Environmental Working Group. Compiled from USDA Risk Management Agency data and company annual reports.
EWG farm bill priorities A farm bill that supports: • Family farmers
• The environment • Working families • Healthy diets
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