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| http://www3.rma.usda.gov/apps/sob/current_week/insplan2015.pdf
9,196,770,514 - 5,715,538,590 = 3,481,231,924 is the crop insurance premium paid by farmers.
Indemnities paid to farmers 3,256,761,402
$224,470,522 of which the private insurance companies get 4%(see RMA link below for this number) and the government's share is 96% which gives $215,491,701.12 of income to the government. The government made money on crop insurance.
The bureaucrats then spend the 9,196,770.514 + 215,491,791 on any pet projects they want since it is not tracked and not returned to the treasury. This is the problem IMHO.
http://www3.rma.usda.gov/apps/sob/current_week/insplan2012.pdf
From this 2012 link, farmers paid $4,136,191,266 in premium and the government subsidy was put at $6,976,886,774. In this epic drought the indemnity paid was $17,442,212,370
https://www.fas.org/sgp/crs/misc/R40532.pdf
This above link shows what private insurance companies pay/receive vs what the government pays/receives. The loss ratio was high in 2012 at 1.57. As such the private insurance companies and private reinsurers were on the hook for 65% of the losses by law with the government on the hook for 35%. $17,442,212,370 times 65% is $11,337,438,040 and the big reinsurer i.e. US Government spent $6,104,774,330 or less than what the subsidy was. Take the difference which is 872,112,444 and you have just shy of a billion dollars the USDA spent on pet projects.
Even though it was an epic drought, the crop insurance program spent .872 billion less than what was allocated to it.
Even though this 2012 drought was one of the greater agricultural disasters on record, no giant government disaster bill was put into law as has been the norm. The crop insurance program did its job.
Private companies administer this program but are not large enough to insure the nations food supply, even with private reinsurers. Having nation's stable food supply would be a proper Constitutional function where car insurance would not be.
Edited by Fletch 11/24/2015 08:53
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Agriculture's image problem
