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Jesup, IA | Not looking to enter the never ending discussion of how much one should farm, I think what the OP is driving at, is that crop insurance rewards behavior that is associated with aggressive operations.
Because of crop insurance subsidies, farmers might:
- bid aggressively for more land
- borrow money
- be more certain of returns, and hence, trade for larger, newer equipment
- farm more marginal land
- expand
- and the list goes on.
One thing you can be sure of, is that politicians will always be more comfortable if the "cupboard is too full" vs "the cupboard is empty". Subsidizing crop insurance is a way to be sure the cupboard is full. 98% of the population (voters) wants cheap plentiful food. 2% of the population actually farms and wants better returns. If you are looking for votes, it's a pretty easy decision which one to make happy. Crop Insurance ends up being a way to subsidize food production, with most of the public not really understanding the cost or ramifications. | |
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