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Crop Insurance Program Makes Billions for U.S. Taxpayers

If you listen to some critics of the Federal Crop Insurance Program (FCIP), you would get an inaccurate picture. Critics contend that the crop program...
July 26, 2011

If you listen to some critics of the Federal Crop Insurance Program (FCIP), you would get an inaccurate picture. Critics contend that the crop program costs the federal Treasury a lot of money. This argument is not true. PIA of North Dakota is out with the facts: The underwriting gains [$5.576 billion] and losses [$1.655 billion] for the Crop Insurance Program by the federal government in the past ten years [2001-2010] is phenomenal, with a net gain of $3.9 billion.

What other federal program puts cash back in the Treasury in seven out of ten years? None! It seems Congress isn't even aware of this fact as it debates and attempts to cut even more from the USDA/RMA and crop insurance budget. The $3.921 billion dollar positive cash flow for the government will deplete and become negative if Congress keeps attacking its own "cash cow." Agents need to explain this fact to anyone who will listen. Bottom line: The crop insurance program makes billions for the U.S. taxpayer. And this success has been achieved through the work of independent, private sector crop insurance agents.

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