Exhibit 651

Crop Insurance: Update on Opportunities to Reduce Program Costs (GAO-24-106086)

Exhibit 651 · GAO report

Crop Insurance: Update on Opportunities to Reduce Program Costs (GAO-24-106086)

In 2022, subsidies averaged about 62 percent of policyholders’ premiums and totaled $12 billion

In 2022 the federal crop insurance program cost $17.3 billion. The government paid insurance companies about $3.7 billion to deliver it ($2.2 billion in administrative and operating subsidies and $1.5 billion in underwriting gains). From 2011 through 2022 the companies' return on retained premiums averaged 16.8 percent against a market-based 10.2 percent. Premium subsidies averaged about 62 percent of premiums and totaled $12 billion. Of 460,615 policyholders, 1,341 (0.3 percent) had adjusted gross incomes of $900,000 or more and accounted for 0.5 percent of premiums; a 15-point subsidy cut for them would have saved about $15 million. USDA had no comments on the report.

Source: U.S. Government Accountability Office
Date: November 2023
Quoted from: Highlights, p. 3 of PDF
Grade: Primary record
Document: https://www.gao.gov/assets/d24106086.pdf
Accessed: 2026-11-09
Cited by: Findings citing this exhibit

Cited by

Finding AGR-3.3: Primary record GAO reported that federal crop insurance premium subsidies in 2022 totaled $12 billion, averaged about 62 percent of premiums, and were set by Congress regardless of income. RMA’s table for crop year 2024 shows $8.89 billion, 63 percent of premiums.
Finding AGR-3.4: Primary record In 2022 the government paid private insurance companies about $3.7 billion to deliver crop insurance, and from 2011 through 2022 their return on retained premiums averaged 16.8 percent against a market-based 10.2 percent.
Finding AGR-3.16: Open question No public USDA or GAO tabulation combines direct payments, crop insurance premium subsidies, indemnities and ad hoc aid by recipient decile or by crop group.