For more: Why does the government subsidize crop insurance in the first place? We try to answer that question in our latest podcast.
The federal government spends about $7 billion a year on crop insurance for U.S. farmers. Policies are sold by private companies, but the government sets the rates, so the companies can't compete on price.
You've all heard a lot about this year's devastating drought in the Midwest, right? The U.S. Department of Agriculture announced last Friday that the average U.S. cornfield this year will yield less per acre than it has since 1995. Soybean yields are down, too.