Rep. Kristi Noem isn't the only person making lots of money on federally subsidized crop insurance. Also profiting at Kristi's preferred trough are several foreign insurance companies:
Twenty insurance companies in Bermuda, Japan, Switzerland, Australia, Canada and the U.S. were paid $7.1 billion in U.S. taxpayer funds from 2007 to 2011 to sell American farmers crop insurance policies, an Environmental Working Group analysis shows. The U.S. Department of Agriculture's Risk Management Agency paid these companies for administrative and operating expenses for the federally subsidized crop insurance program.
The agency also reported $8.1 billion in underwriting gains during the same period but has not disclosed how much of the gains each company received. EWG has filed a Freedom of Information Act request for this information.
Switzerland-based ACE Limited was the second largest recipient of these payments raking in $1.5 billion. Australia-based QBE Insurance Group ranked third, with $832 million; and Bermuda-based Endurance Specialty Holdings Limited ranked fifth, with $446.3 million [Environmental Working Group, "Foreign Companies Paid Billions to Run U.S. Crop Insurance Program," press release, 2012.03.16].
I'm sure glad these foreign companies are helping to ensure America's food independence.
This would be a heck of an issue for local farm expert Charlie Johnson to run on... if he were running against Rep. Kristi Noem instead of State Senator Russell Olson. (Hey, Charlie, there's a thought....)
Subsidized crop insurance is perhaps the number one reason for high land prices and huge cash rents. When an operator through revenue products can guarantee a large portion of the outcome, the price he will pay for rent or land will escalate. Combine that with increasing technolgy, getting rid of more farmers is the ultimate outcome. There is nothing wrong inherently with insurance but the purchaser of the product should pay the full cost. Otherwise you are skewing economics in the very least or implementing a "wealth transfer" program at it's worst. Keep in mind also an operator could farm the entire township and there would be no limit to the amount of subsidy he/she receives.
Keep in mind also an operator could farm the entire township and there would be no limit to the amount of subsidy he/she receives.
Please explain how this can be done I own several sections of land and would like to get some of these unlimited subsidies.
The Blindman
The only landowner that I know of around here that has a whole township is Ted. There could be more but I just dont know of any.
The Blindman
Interesting link, Charlie, between insurance and land prices!