Large Farmers Received Millions in Insurance Subsidies, Report Says
The U.S. Government Accountability Office (GAO) has released a report stating that millions of dollars in subsidies were provided by the federal government in 2021 to help large farmers pay for their crop insurance policies. The federal crop insurance program, which is heavily subsidized with taxpayer dollars, cost $17.3 billion last year, with $3.7 billion paid to insurance companies and agents selling and servicing the policies. The report found that 19 policyholders each received more than $3 million in federal funds to help cover their insurance costs, with no restrictions based on income. Over the next decade, the program is projected to cost the government approximately $10.1 billion annually. The GAO has recommended reducing subsidy rates for high-income farmers and adjusting compensation to insurance companies to align with market rates.
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