Risk Management - Crop Insurance at a Glance

[Peteri Szerlagi]

Risk Management - Crop Insurance at a Glance

https://www.ers.usda.gov/topics/farm-practices-management/risk-management/crop-insurance-at-a-glance

apparently the govt has been making money on crop insurance since 1990
- but they force farmers to buy it - and they also pay $11B per year
to help farmers buy the insurance - which sounds really f'ed up

[Peteri Szerlagi]

$10B cost to run the program - to cover $20B in "farmers losses" -
while making a $11B profit for the government

so the farmers pay $20B in premiums - the govt pays $10B to run the
program - $20B is paid out to cover losses - and the govt claims a
$11B profit

looks like the taxpayers are getting soaked for $10B per year so the
govt can claim they made a $10B profit

what am I missing here?