Anne Schechinger is Senior Analyst of Economics for the Environmental Working Group. This report first appeared on the EWG’s website. 

Overview

• Crop insurance companies and agents received almost $33.3 billion from taxpayers and farmers over the last 10 years. 
• Ten of these companies are owned by publicly traded corporations with enormous net worths and massive executive salaries.
• Lowering program delivery payments to companies and agents and other subsidies could save over $1 billion a year, while maintaining a safety net for farmers.

The federal Crop Insurance Program is known for paying billions of dollars every year to farmers when they experience reductions in crop yield or revenue. But the Department of Agriculture program also sends billions of dollars annually – much of it taxpayer-funded – to a small number of crop insurance companies that service the policies. Many of these companies are owned by extremely wealthy, publicly traded global corporations. The program also gives billions of dollars annually to crop insurance agents – a cost that has soared in recent years.

Anne Schechinger is Senior Analyst of Economics for the Environmental Working Group. This report, which she co-authored with the EWG’s Senior Vice President for Government Affairs Scott Faber, first appeared on the EWG’s website. 

The Environmental Working Group’s newly updated Farm Subsidy Database shows that federal farm subsidies between 1995 and 2021 totaled $478 billion. This huge amount of taxpayer money does almost nothing to help farmers reduce their greenhouse gas emissions or adapt to adverse weather conditions caused by the climate crisis.

Our database update also shows that farm subsidy funding still goes to the largest and wealthiest farms, which can weather the climate crisis best, and that payments are getting less transparent, obscuring who has received almost $3.1 billion in payments. 

The Department of Agriculture’s subsidy funding could be used in much more useful ways that would help farmers in mitigating their emissions and becoming more resilient to hazardous weather conditions. Instead, it’s still a handout for rich landowners, city dwellers and family members of farmers. Even the USDA is benefiting, with one of its divisions receiving almost $350 million in payments.

Anne Schechinger is Senior Analyst of Economics for the Environmental Working Group. This report first appeared on the EWG’s website.

A new EWG analysis has found that the overwhelming majority of Midwestern counties with increased precipitation between 2001 and 2020 also had growing crop insurance costs during that period due to wetter weather linked to the climate crisis. 

In all, 661 counties got a crop insurance indemnity payment for excess moisture at some point during that period, adding up to $12.9 billion – one-third of the $38.9 billion in total crop insurance payments for all causes of loss in these counties.

This is the first analysis of the link between recent wetter Midwestern weather caused by climate change and rapidly ballooning crop insurance payments in the region for crops that have failed or been harmed by rain, snow, sleet and other wet weather – issues lumped together by the federal Crop Insurance Program under the term “excess moisture.”

Anne Schechinger is Senior Analyst of Economics for the Environmental Working Group. This report first appeared on the Environmental Working Group’s website.

Farmers received almost $7.4 billion in payments from two of the largest federal agricultural conservation programs between 2017 and 2020, but only a small proportion of these payments went to practices that reduce greenhouse gas emissions from farming. 

This finding comes from the Environmental Working Group’s newest update to its Conservation Database, which provides 2017–2020 payment data for five of the largest Agriculture Department farm conservation programs.

Anne Schechinger: President Joe Biden and Congress must reform a wasteful and unfair farm subsidy system. This report first appeared on the Environmental Working Group’s website. -promoted by Laura Belin

Taxpayer-funded farm subsidies have long been skewed in favor of the richest farmers and landowners. But under the Trump administration, even more money went to the largest and wealthiest farms, further shortchanging smaller, struggling family farms.

The Environmental Working Group’s analysis of records from the U.S. Department of Agriculture finds that subsidy payments to farmers ballooned from just over $4 billion in 2017 to more than $20 billion in 2020 – driven largely by ad hoc programs meant to offset the effects of President Trump’s failed trade war.

This article first appeared on the Environmental Working Group’s website. -promoted by Laura Belin

The largest and wealthiest U.S. farm businesses received the biggest share of almost $33 billion in payments from two subsidy programs – one created by the Trump administration to respond to the president’s trade war and the other by Congress in response to the coronavirus pandemic, according to updates to EWG’s Farm Subsidy Database.

The Market Facilitation Program, or MFP, was intended to offset the perceived damage done by the administration’s trade war, which reduced many farmers’ access to lucrative Chinese markets. Payments for the 2018 and 2019 crop years were just over $23 billion – more than $8.5 billion for 2018 and $14.5 billion for 2019.

EWG’s analysis of Department of Agriculture records, obtained under the Freedom of Information Act, shows: