Tuesday, June 02, 2009
Crop Insurance and GAO
Keith Good at Farm Policy blogs on a GAO report on crop insurance. If I get ambitious I'll look at the report myself, but one striking thing is that the federal subsidy for administration and operations is tied to the value of the crops insured. So the increase in crop prices in 2006-8 raised the subsidy, though presumably not the actual work involved. (The total program cost $6.5 billion, $2 billion for administration. Don't know what FSA's administrative expenses are.) Nice work if you can get it.