Millionaire CEOs run companies receiving billions from the federal crop insurance program

In the 2023 farm bill, lawmakers are looking everywhere for savings to fund their priority programs. One possible source of savings: overhead and profits of the federal crop insurance program of major insurance companies.

Crop insurance companies and insurance agents receive money from the federal government for administrative and operational payments, and underwriting profits also go to the companies.

Like the EWG recently foundcompanies and agents have received almost $33.3 billion in total compensation over the past 10 years, with much of the money coming from taxpayers.

The crop insurance program is a “public-private partnership” that sends taxpayer money to companies that then give some of the money to agents who actually sell the policies and make insurance adjustments.

The Ministry of Agriculture has granted 14 companies the right to sell crop insurance policies. Ten of them are owned by publicly traded corporations with multi-billion dollar net worths.

Location and information on crop insurance companies

The CEOs of the 10 publicly traded corporations had annual compensation that ranged from $660,150 to $24.8 million, nearly $112 million in total in just one year.

The problem isn’t just the huge amounts of money these big companies are raising. It is also the inherent inequality of the billions of taxpayer and farmer money sent by the USDA to large companies led by CEOs making millions every year, while the average American household accepts only $71,000 annual income.

And the program is not transparent. Although the names of farmers who collect traditional subsidies commodity program are public knowledgeThe USDA does not disclose the names of those who benefit from crop insurance subsidies or how much money the program sends to individual crop insurance companies each year.

Reducing the amount of money these companies receive through insurance profits and administrative and operating costs could either reduce the burden on taxpaying American households or free up money to fund farm bill priorities that benefit farmers. and not the big corporations.

Adoption of regulations c Crop Insurance Transparency Actintroduced by Reps. Earl Blumenauer (D-Ore.) and Ralph Norman (RS.C.), would greatly improve the program’s transparency by listing the names of farmers and crop insurance companies who receive crop insurance subsidies and how much they get money.

CEOs of publicly traded corporations that own crop insurance companies

Main photo: University of Cincinnati

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