Are farmers paying too much for crop insurance? It sure seems so, at least in the Corn Belt. With the exception of 2008 when a large drop in price triggered payments, Corn Belt farmers have generally paid more into the program than they have gotten out, despite Congress’s intention that farmers get at least two dollars for each dollar they pay into the program.
Babcock, Bruce A. and Yu, Tian
"Drought Tolerance and Risk in the U.S. Crop Insurance Program,"
Iowa Ag Review: Vol. 15
, Article 2.
Available at: http://lib.dr.iastate.edu/iowaagreview/vol15/iss4/2