In a decade, government outlays to subsidize crop insurance increased 60%, expanding in sync with the rapid growth in acreage covered by the policies, according to Risk Management Agency data. Some $11.6 billion in premium subsidies were paid for the 2022 crop year, a record amount.
- Big growth: Premium subsidies cost nearly $7 billion in crop year 2012, when 282.9 million acres were insured. In 2022, 493.3 million acres were insured.
- To encourage enrollment, the government pays 60 cents of each $1 of premium. Premiums totaled $18.4 billion on 2022 crops, with $15.9 billion paid in indemnities.
Some groups are already using this data to call for crop insurance reforms via the new farm bill making its way through Congress. But crop, livestock and dairy insurance proponents say they are already in the process of educating lawmakers and staff regarding the importance to keep improving the risk management tool supported by many farm groups and lawmakers.
