Crop Insurance Is the Real Subsidy: The Hidden Floor Under Deere and Corteva

Every spring, a farmer decides whether to lease a new combine or spray the premium fungicide package. That decision runs through USDA's Risk Management Agency (RMA) more than it runs through any bank. The Federal Crop Insurance Program (FCIP) — the federal government subsidizing roughly 60% of the average farmer's crop insurance premium, per RMA's published subsidy schedule — is the mechanism that lets farmers take on equipment debt and input spend they'd otherwise refuse. When Congress reauthorizes or amends the Farm Bill's Title XI insurance provisions, it isn't tweaking a safety net. It's resetting the collateral quality behind every dealer floor-plan loan and every retail input invoice in farm country. Loss ratios (indemnities paid versus premium collected) determine how aggressively RMA and private insurers can price policies going forward, and that pricing is the silent variable behind "strong farm income" headlines that equipment and seed sellers cite on earnings calls.