How It Works
Farming is Uniquely Risky
One bad storm, freeze, pest outbreak, or price collapse can wipe out an entire year of work — and an entire rural county’s economy along with it. Crop insurance is the modern safety net that keeps farms — and the food system — stable.
Crop insurance is a public-private partnership. Farmers spend money from their own pockets to buy policies from private insurers, and the federal government helps make premiums affordable and sets the rules of the road. Claims are handled by the private sector, which means when disaster strikes, adjusters can move fast and payments typically arrive within weeks — not months or years like old government-delivered disaster aid used to.
Farmers, private companies, and the government all share risk — and because everyone has skin in the game, it keeps costs down and reduces waste and abuse.
Crop Insurance Protects
Today, crop insurance provides nearly $160 billion worth of protection across more than 560 million acres of U.S. farm and ranchland. In addition, ranchers spent $1.1 billion in 2025 to purchase livestock coverage, providing another $40.2 billion in liability protection for U.S. agriculture.
And while the food and agriculture industry contributes trillions to the U.S. economy and supports millions of jobs, crop insurance costs just a fraction of a penny of every federal dollar. It’s one of the most efficient, lowest-cost policies in the federal toolbox — and it keeps America’s food, fiber, fuel, and feed supply secure.
Want to learn more?
Download our whitepaper with details about legislative history, impact on the economy and more.