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| Yes. The government subsidies all go to the insurance company as they are part of the premium and the farmer portion of the policy premium as well. The insurance company than pays out those dollars on claims. That's how insurance works. If there is money left over from multi peril subsidized policy I believe its returned to the government pool. Hail insurance and other private products is where your insurance company and agent make bank but also is not backed by the government. Wind and hail policy offerings have been getting killed on the loss side since the Iowa derecho and that's why you see the cost of those policies nearly doubling vs several years ago. That has nothing to do with RMA. The government is essentially just insuring drought and a massive derecho like event. | |
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Crop Insurance
