This year’s historic drought is turning the spotlight on an
obscure form of aid for America’s farmers: federal crop
insurance. With crop losses soaring, farmers are headed toward
some $18 billion in losses, and taxpayers might foot up to $10
billion of that, according to Vincent H. Smith, an economist at
Montana State University who has studied crop insurance for
nearly two decades. That is on top of the $9 billion this year
that the federal government provided farmers to help them afford
crop insurance premiums. Partly because of the costs involved,
the insurance program has come under scrutiny from both sides of
the political aisle. Budget hawks and environmentalists alike
are calling for tougher limits that they say would discourage
farmers from taking risks with their finances and the land. But
Congress seems to be interested in expanding, not curbing, the
crop-insurance program, and farmers say the insurance program is
a critical lifeline, especially this year. In large part due to
the hottest July on re