America was made a little more secure last week by Kristi Noem’s early departure from the Department of Homeland Security. But her family’s federally subsidized income remains secure. Her husband Bryon continues to suckle at the government teat selling crop insurance, a federally subsidized racket that diverts 23% of its payments to the pockets of corporate middlemen like Bryon:
Farm insurance policies are projected to pay out $17.4 billion this year in indemnities. Thus, farmers are expected to receive a net payment of $9.6 billion ($17.4 billion – $7.8 billion [in premiums paid]). The CBO expects similarly large net payments to farmers in coming years, so these are subsidies, not insurance. Even with the generous benefits, some farmers defraud the system for extra gains.
In 2026, the government is expected to pay the insurance companies $5.1 billion, including $2.4 billion for administrative costs and $2.7 billion for underwriting gains. The Government Accountability Office (GAO) found that the 12 crop insurance firms earn profits far above market rates. It seems very inefficient that to give farmers a subsidy of $9.6 billion, taxpayers also have to pay $5.1 billion to corporate middlemen [Chris Edwards, “Federal Crop Insurance,” Cato Institute: CATO at Liberty, 2026.03.19].
The crop insurance money that doesn’t stop in Bryon’s pocket will accrue disproportionately to the wealthiest farmers:
…There are no income limits on crop insurance subsidies. As a result, the subsidies flow heavily to the top end. One American Enterprise Institute analysis found that the largest 10 percent of farms receive 56 percent of all crop insurance subsidies.
GAO has reported that 1,341 crop insurance recipients have annual incomes of more than $900,000, and that even some billionaires receive the subsidies [Edwards, 2026.03.19].
That’s your tax dollars at work, making sure Bryon Noem and millionaire farmers stay rich when misfortune comes their way.