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SE IL | On a 80% corn policy for my area the total cost going from memory is 50-60$/acre with Gov taxpayer kicking in 60%ish so lets be conservative and call it $30. Insurance companies for admin get 10-15% of total. So on the high end that’s $9/acre compared to the farmer getting 30…..not to mention this same policy would probably be double if it was private. The gov backstop is also providing a massive subsidy to us by insuring a lot of risk for a small % of what it should cost.
Now it seems insurance isn’t getting much but it’s risk free essentially. Also if total policies only avg $4/a to insurance times 180 million corn soy acre that’s 720 million. Add in other crops plus private add ons and it’s easily a billion dollar plus industry, absolutely worth them lobbying hard for. | |
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Do farmers get subsidized crop insurance?