One feature of todays insurance business is the large lines of insurance that hang almost entirely on a government mandate or subsidy. Regardless of whether these subsectors are profitable, an act of Congress created the business and another act can destroy it.
Recently, Cargill and other ag-related businesses, such as Monsanto and John Deere and financial giant Wells Fargo, have sold their crop insurance subsidiaries. Apparently, all have decided that such insurance is an overly competitive, low-margin business that does not fit well within their core activities.
Farming is inherently a risky business. Weather risks, such as drought, hail and frost, have large effects on yield