Making Money on Crop Insurance

February 11, 2016

The Environmental Working Group (EWG) released a report showing that “most farmers make money by just buying a crop insurance policy.”  The EWG estimated that between 2000 and 2014, farmers in aggregate got back $2.20 in claims for each dollar they paid in premiums, which is an annual return of 120 percent.  The EGW argues the reason why most farmers make money on crop insurance is that “taxpayers pay about 60 percent of the premiums, all the costs of administering the program and a large share of the claims payouts.”  EWG further concluded that the “cost to growers is so low that over time most can expect to collect far more in payouts than they pay in premiums.”

To view the report from EWG, click here.

 

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