Agricultural insurance has become an increasingly important component of the farm program over the past decade. Since 2007, government subsidies for crop insurance have averaged about $5.6 billion per year, representing over one-third of total expenditures on income transfers and other government payments for programs targeted directly to farmers. However, about 58 percent of those expenditures have ended up in the hands of agricultural insurance companies and agricultural insurance agents. In fact, since 2005, on average, the agricultural insurance industry has received $1.44 for every dollar farmers have received in crop insurance subsidies.
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