Subsidies this and subsidies that. Everyone wants to tell you how farmers are soaking the system, getting rich from doing nothing, and making taxpayers pay for all of it.
I mean, seriously, people still tell me that farmers are paid to plow under crops. (No, they are not.)
But consider this: The crop insurance system actually shielded farmers from shouldering the burden of 2012 drought.
Check this out:
Crop insurance is an evolving approach to risk management that requires farmers to put “skin in the game” for their own risk protection. In 2012, for example, farmers spent $4.1 billion purchasing crop insurance policies. Once a loss exceeds the level of premiums, crop insurance companies also pay part of the costs. Their share of losses in excess of premiums starts out large and decreases, as the size of the loss gets larger.
To find out more, check out: Did the 2012 Drought Put An Unnecessary Burden on Taxpayers?