The federally-subsidized crop insurance program will cost an additional $27.7 billion over the next decade. A Congressional Budget Office report says the government pays roughly 62 cents of each dollar in premiums, and sales of livestock and forage policies are exploding.
A Farmdoc report says crop insurance costs should rise by 29 percent to nearly $125 billion for the decade ending in 2033. Despite the increase, USDA spending on crop and livestock subsidies and land stewardship programs should remain stable. While crop insurance costs likely will increase, the Senate Ag Committee says that projected costs for all farm bill-related programs are now $1.46 trillion between 2025 and 2034. That’s down 3.5 percent from the previous ten-year baseline of $1.5 trillion.
Livestock insurance programs have grown dramatically since 2018 when Congress increased the premium subsidy rates for coverage. Policies covered $26.4 billion of liabilities in 2023, compared to $512 million in 2018.
