Crop Insurance: The Hidden Half of Farm Subsidies

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The $147 billion tracked by OpenSubsidies is only part of the story. Federal crop insurance adds another $10–13 billion per year in taxpayer-funded premium subsidies — a parallel system most people never see.

$10-13B

Annual crop insurance premium subsidies

$147B

FSA direct payments (our data)

120+

Crops covered by federal insurance

📋 Transparency Note

OpenSubsidies tracks FSA (Farm Service Agency) direct payments — the $147 billion in commodity support, conservation, disaster relief, and trade war payments. Crop insurance premium subsidies are administered by a different agency (USDA Risk Management Agency) and are not included in our database. We present this page for complete transparency about what our data does and doesn't cover.

What Is Federal Crop Insurance?

The Federal Crop Insurance Corporation (FCIC), created during the Great Depression in 1938, provides subsidized insurance policies to farmers through private insurance companies. The government pays approximately 60% of insurance premiums on behalf of farmers, plus administrative and operating costs to insurance companies.

In 2024, total crop insurance premiums were $17.3 billion, of which the federal government subsidized approximately $10.5 billion. When a crop is damaged by drought, flood, hail, or other covered events, farmers receive indemnity payments from their insurance policies.

How Crop Insurance Differs from FSA Payments

FeatureFSA Payments (Our Data)Crop Insurance
AgencyFarm Service AgencyRisk Management Agency
Annual Cost$6–39B (varies wildly)$10–13B (more stable)
Payment TypeDirect payments to farmersPremium subsidies + indemnities
Recipient TransparencyNames publicly availableIndividual names often hidden
Programs157 programs (CRP, PLC, ARC, etc.)Revenue Protection, Yield Protection, etc.
Crops CoveredPrimarily corn, wheat, soybeans, cotton, rice120+ commodities
Our Coverage✅ Fully tracked❌ Not included

The Full Picture of Farm Support

When you add crop insurance subsidies to FSA direct payments, the true cost of federal farm support is significantly higher than either number alone. In a typical year:

  • FSA direct payments: $6–17 billion (baseline years) or $20–39 billion (crisis years)
  • Crop insurance premium subsidies: $10–13 billion
  • Crop insurance company A&O subsidies: $1–2 billion
  • Total federal farm support: approximately $20–50+ billion per year

The 2020 peak year saw approximately $55 billion in total farm support when combining our $38.7 billion in FSA payments with crop insurance subsidies and indemnities.

Most Subsidized Crops

In 2024, farm subsidies (both FSA and crop insurance) disproportionately supported a handful of commodity crops:

  • Corn: $3.2 billion in FSA subsidies (30.5% of total) + largest crop insurance coverage
  • Soybeans: $1.9 billion in FSA subsidies (17.9%)
  • Cotton: Major recipient of both PLC payments and crop insurance
  • Wheat: Significant PLC and ARC coverage
  • Rice: Among the most subsidized per acre

Why This Matters

Understanding the full scope of farm support requires looking at both FSA direct payments and crop insurance. Policy debates about farm subsidy reform often focus on one while ignoring the other. Our FSA database — with named recipients, county-level detail, and 9 years of data — provides the most transparent view of direct farm payments available. For crop insurance data, USDA's Risk Management Agency publishes summary-level data by state, crop, and cause of loss.

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