The year-long investigative report shows insurance brokers received more than a third of the federal program benefits.
The Government Accountability Office (GAO) released a report this week showing that over a third of the U.S. Department of Agriculture’s (USDA) crop insurance program has been going to private insurance companies rather than the farmers growing the crops.
Between 2011 and 2022, the USDA sent $36.6 billion from this program to private insurance companies, who in turn profited around $1.4 billion annually with a 17 percent rate of return. The average market rate for crop insurance is 10 percent, and the USDA’s targeted rate of return for crop insurance companies is 14.5 percent.
Senator Cory Booker of New Jersey, who called for this GAO report, expressed concern that so much of the money meant to protect farmers’ livelihoods from natural disasters has been used by insurance companies for profit. He stated, “This GAO report shows that a shocking proportion of the subsidies intended to support the cost of writing crop insurance policies for all farmers are being eaten up by companies and agents.”
As the Lord Leads, Pray with Us…
- For Senator Booker and his colleagues as they seek to ensure farmers benefits from the federal program rather than private insurance brokers.
- For Comptroller General Dodaro as he heads the Government Accountability Office.
- For the USDA secretary and department officials to administrate the crop insurance program with discernment.
Sources: Reuters, Agri-Pulse
