Who is best suited to provide crop insurance?

A new report is likely to reignite the debate over who should deliver crop insurance policies to farmers and how those service providers should be compensated. Some say the federal government should stop paying so much in crop insurance subsidies, while others suggest that USDA employees could directly provide the same types of risk management tools. At the request of Rep. Henry Waxman (D-CA) and two other congressmen, the Government Accountability Office (GAO) issued a report that echoes what many industry officials have admitted: “Crop Insurance: Opportunities Exist to Reduce the Costs of Administering the Program.” Problem is, there is little agreement on exactly how the industry should cut costs while continuing to deliver quality service across all 50 states and stay profitable.