Taxpayers subsidize much of the cost of crop insurance in three ways. First, taxpayers pick up about 60 percent of the policy premium according to the Congressional Research Service. Farmers pay only 40 percent. Second, the federal government reimburses private crop insurance companies for their "administrative and operating" cost at between 22 and 24 percent of total premiums, again according the Congressional Research Service. Finally, taxpayers are liable for a significant share of the payments that go to producers in the event of a yield or revenue loss. As losses mount, the share of the losses paid by taxpayers increases.