If you are an african american, latino or a woman I need you to get excited about the next election. If not, I HAVE 3/4 OF THE 786 BILLION TO BUY YOU OFF BEFORE THE ELECTION.
If the american public ever found out how much money is made by crop insurance agent there would be a huge revolt. $400,000 premium, gov subsides 60% or more and agent gets commission on the $400,000. I know agents that make well into 6 figures every year on just crop insurance. A total rip off of the taxpayer. Agents make lots of money and farmers pad their checking account.
Apparently neither of you are in the insruance industry so not sure why you are reading IJ. State insurance regulations require that rates be fair and adequate and that profits be reasonable but not excessive. Why should a Federally subsidized insurance program be allowed to make such an exorbitant profit at taxpayer expense? Maybe you actually work for Goldman Sachs……
Crop insurance is not really insurance; it is government farm subsidies. It is a good money maker for agents who have the experience and time to complete all of the forms required; but there is or use to be a lot of corruption. I’ve been out of crop insurance for a while, but claims paid on raisin losses were greater then the crop was worth; claims on Safflower (in case they didn’t grow). As I recall no underwriting consideration for crops or areas that had huge losses nor areas that were basically loss free. But it is government subsidized. Not saying that is a bad thing, just the reality
Aren’t the insurers going to need those profits to pay for the potential catastrophic losses due to climate change? Or, as I suspect, does the government speak with forked tongue to fit whatever desires it has? One doesn’t need to be an actuary to know that a 17% return is not too unreasonable for a product with catastrophic potential.
Everywhere I turn I see a government program that subsidizes private companies profits:
Crop Insurace
Student Loans
Bail outs to Banks
Bail outs to Car Companies
Bail outs to State Governments
Exploration Subsidies to the Oil Companies
Ear mark spending attached to totally unrelated bills
Jeez – China’s goverment doesnt interfere in private business to the extent this government does and they are Communists!!
Maybe it has something to do with the fact that we have the best politicians that money can buy.
The govt originally subsidized student loans to allow more families to send kids to school. Actually, as I recall, it wasn’t a direct subsidy but a guaranty of repayment that allowed lower rates.
Anyway, Hussein Obooba and the democraps turned this around to make it look like the banks were being subsidized and not the students.
OboobaCare is going in the same direction. Eventually there will be no private health insurers, according to plan.
So yeah let’s let the govt run everything: with the efficiency of the post office, the customer service of the DMV, and the ruthlessness of the IRS.
Crop insurance is a joke. I purchased crop insurance on my tomato plants last year and they were a total loss but the policy never paid out. Rabits destroyed them all and I had no tomatoes to make mamas famous sauce.
Can you explain your comments further? I find your point of view interesting.
Did you ask those agents that you know how much they make net, not gross? After E & O, staff costs, employee benefits, etc., there’s a lot of overhead and a lot of work to run an agency. And did you ask them how many hours a week they worked? I’m sure it’s not 9AM-5PM with nights and weekends off!
If you look st the RMA subsidies chart on their website, the gov subsides 60% or more that you mention are only on certain policies and the price to the farmer is still very costly.
May I offer a suggestion to you – if this is your standpoint – “A total rip off of the taxpayer. Agents make lots of money and farmers pad their checking account.” – I urge you to quit your day job and become a farmer or a crop insurance agent. Put yourself in their shoes and see where you get!
Well that is an oxymoron comment if it’s true. Here in Phoenix, Arizona, one of the few places left in Arizona did NOT tax groceries. As of April of this year, they now tax groceries. So let’s supplement the farmers to keep prices down, but let’s tax to bring it back up. This is why government is so screwed up. I say cut the supplement every year for the next five years until it is gone. Then let the cost of food go up and maybe somebody will kick the crap out of local legislators to remove the grocery tax.
Baxtor, do you know that when the government determines the rate of inflation it omits groceries from the inflation index. Hmmmmm why is that, dont we all have to eat. It is because mega farmers deal with politicians behind closed doors in almost every state of this country. We spend billions each year on Food. They want you to keep that vision in your head of a poor family farmer, hell we even have Farm aid and the Government even pays farmers not to grow certain crops, I wonder how and who decides which crops?
How bout this, why continue let the taxpayers pay for this subsidy (and risk). If the coverage is so valuable, how bout we let the insurance market offer it without taxpayers subsidizing it.
How bout we do with Flood Coverage as well.
Frankly, I’m tired of subsidizing and paying of people who choose take risks without paying the appropriate price for them because of taxpayer support.
Well, if crop insurance is paid in part by government funds, then if they are making such a “HUGE” profit, why continue to pay it?
Nobody but government should be successful as far as the Administration is concerned.
You are right. The govt is successful at lying about cut-backs and cost savings while tripling the annual deficit
Spread the wealth whether you earn it or not.
If you are an african american, latino or a woman I need you to get excited about the next election. If not, I HAVE 3/4 OF THE 786 BILLION TO BUY YOU OFF BEFORE THE ELECTION.
If the american public ever found out how much money is made by crop insurance agent there would be a huge revolt. $400,000 premium, gov subsides 60% or more and agent gets commission on the $400,000. I know agents that make well into 6 figures every year on just crop insurance. A total rip off of the taxpayer. Agents make lots of money and farmers pad their checking account.
Apparently neither of you are in the insruance industry so not sure why you are reading IJ. State insurance regulations require that rates be fair and adequate and that profits be reasonable but not excessive. Why should a Federally subsidized insurance program be allowed to make such an exorbitant profit at taxpayer expense? Maybe you actually work for Goldman Sachs……
Crop insurance is not really insurance; it is government farm subsidies. It is a good money maker for agents who have the experience and time to complete all of the forms required; but there is or use to be a lot of corruption. I’ve been out of crop insurance for a while, but claims paid on raisin losses were greater then the crop was worth; claims on Safflower (in case they didn’t grow). As I recall no underwriting consideration for crops or areas that had huge losses nor areas that were basically loss free. But it is government subsidized. Not saying that is a bad thing, just the reality
Aren’t the insurers going to need those profits to pay for the potential catastrophic losses due to climate change? Or, as I suspect, does the government speak with forked tongue to fit whatever desires it has? One doesn’t need to be an actuary to know that a 17% return is not too unreasonable for a product with catastrophic potential.
Are you sure this is a free market country?
Everywhere I turn I see a government program that subsidizes private companies profits:
Crop Insurace
Student Loans
Bail outs to Banks
Bail outs to Car Companies
Bail outs to State Governments
Exploration Subsidies to the Oil Companies
Ear mark spending attached to totally unrelated bills
Jeez – China’s goverment doesnt interfere in private business to the extent this government does and they are Communists!!
Maybe it has something to do with the fact that we have the best politicians that money can buy.
This should be done like the student loan program — sold directly by the government.
The govt originally subsidized student loans to allow more families to send kids to school. Actually, as I recall, it wasn’t a direct subsidy but a guaranty of repayment that allowed lower rates.
Anyway, Hussein Obooba and the democraps turned this around to make it look like the banks were being subsidized and not the students.
OboobaCare is going in the same direction. Eventually there will be no private health insurers, according to plan.
So yeah let’s let the govt run everything: with the efficiency of the post office, the customer service of the DMV, and the ruthlessness of the IRS.
Crop insurance is a joke. I purchased crop insurance on my tomato plants last year and they were a total loss but the policy never paid out. Rabits destroyed them all and I had no tomatoes to make mamas famous sauce.
One who knows,
Can you explain your comments further? I find your point of view interesting.
Did you ask those agents that you know how much they make net, not gross? After E & O, staff costs, employee benefits, etc., there’s a lot of overhead and a lot of work to run an agency. And did you ask them how many hours a week they worked? I’m sure it’s not 9AM-5PM with nights and weekends off!
If you look st the RMA subsidies chart on their website, the gov subsides 60% or more that you mention are only on certain policies and the price to the farmer is still very costly.
May I offer a suggestion to you – if this is your standpoint – “A total rip off of the taxpayer. Agents make lots of money and farmers pad their checking account.” – I urge you to quit your day job and become a farmer or a crop insurance agent. Put yourself in their shoes and see where you get!
May I also suggest you visit a website to learn more about the crop insurance program:
http://www.cropinsuranceinamerica.org/
Well that is an oxymoron comment if it’s true. Here in Phoenix, Arizona, one of the few places left in Arizona did NOT tax groceries. As of April of this year, they now tax groceries. So let’s supplement the farmers to keep prices down, but let’s tax to bring it back up. This is why government is so screwed up. I say cut the supplement every year for the next five years until it is gone. Then let the cost of food go up and maybe somebody will kick the crap out of local legislators to remove the grocery tax.
Baxtor, do you know that when the government determines the rate of inflation it omits groceries from the inflation index. Hmmmmm why is that, dont we all have to eat. It is because mega farmers deal with politicians behind closed doors in almost every state of this country. We spend billions each year on Food. They want you to keep that vision in your head of a poor family farmer, hell we even have Farm aid and the Government even pays farmers not to grow certain crops, I wonder how and who decides which crops?
How bout this, why continue let the taxpayers pay for this subsidy (and risk). If the coverage is so valuable, how bout we let the insurance market offer it without taxpayers subsidizing it.
How bout we do with Flood Coverage as well.
Frankly, I’m tired of subsidizing and paying of people who choose take risks without paying the appropriate price for them because of taxpayer support.