Five Fast Facts

ABOUT

CROP INSURANCE PREMIUM SUBSIDIES

1. CROP INSURANCE PREMIUM SUBSIDIES ARE UNLIMITED

Unlike other farm subsidy programs, agricultural producers can currently receive unlimited premium subsidies in the federal crop insurance program. In 2011, producers received $8,312 on average in premium subsidies, but the largest producers received more than $1 million in just one year. A 2012 Government Accountability Office (GAO) report estimated taxpayers could save approximately $1 billion if subsidies were limited to $40,000 annually, similar to past farm subsidy programs.

2. THE LARGEST AG PRODUCERS RECEIVE A DISPROPORTIONATE AMOUNT OF SUBSIDIES

The 2012 GAO report found that just four percent of participating farmers received one-third of all crop insurance premium subsidies in 2011.

3. TAXPAYERS DON’T KNOW WHO RECEIVES CROP INSURANCE SUBSIDIES

Unlike farm subsidies, crop insurance premium subsidy information is not released to the public. Taxpayers are thus unaware of who is benefiting from the $8-9 billion federal program.

4. MILLIONAIRES, BILLIONAIRES & NONFARMERS RECEIVE CROP INSURANCE SUBSIDIES

A 2014 GAO report found that crop insurance subsidies benefit farmers and non-farmers alike, including attorneys, executives, and physicians. Four subsidy recipients “who had net worth over $1.5 billion each in 2013, earned their wealth from a variety of sources in addition to farming, such as mining, real estate, sports, and information technology…”

5. US CROP INSURANCE PREMIUM SUBSIDIES BENEFIT FOREIGNERS AS WELL

A 2015 GAO report identified some US crop insurance subsidy recipients with foreign residences in Canada and France.

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