UPDATED WITH NEW INFORMATION: Are crop insurance subsidies encouraging farmers to plow up wetlands and grasslands?

Federal crop insurance will be very important to many Iowa farmers because of this year's extreme drought.

But a new study by the Environmental Working Group concludes the program has also contributed to the loss of more than 23 million acres of grassland, shrub land and wetlands between 2008 and 2011.

The report says heavily subsidized crop insurance reduces the financial risk of planting on marginally productive land, so that leads to environmental damage that would not otherwise occur.

Former Iowa DNR Director Paul Johnson of Decorah agrees with the conclusion of the report and says "it's just sad" to see so much lost land.  He places the trend to action by Congress that increased the amount of subsidies for crop insurance.  The USDA used to subsidize an average of 30 percent of the cost of crop insurance premiums.  Today USDA pays an average of 62 percent of crop insurance premiums.

But when Congress made the change, it did not subject crop insurance subsidies to conservation requirements, as had been done with previous farm programs.

That began to reverse the progress that had been made since 1985 in controlling soil erosion, preserving wildlife habitat and protecting sensitive property.  "Farmers ought to be ashamed of themselves" for lobbying for this change, says Johnson.  (see updated note below)

This year the U.S. Senate included a "conservation compliance" provision requiring growers who accept crop insurance subsidies to protect wetlands, grasslands and soil health on their land.  But the House was unable to reach agreement on a Farm Bill.

"This is not a partisan (issue)," says Johnson, who is hoping the Senate version will prevail in future Farm Bills.

A copy of a letter from Paul Johnson clarifying what he meant when he said "farmers ought to be ashamed of themselves" is posted below.

The complete report on crop insurance subsidies can be read at http://static.ewg.org/pdf/plowed_under.pdf