The gentlewoman talked about a 27.5-percent commission, and I think in all due fairness to the insurance agents, the average commission for Federal crop insurance is about 10 percent to the agent. The other money goes to cover the administrative costs of running this program through the private sector. Now, if we do not pay those costs and all of that falls back on the Government, we will spend a lot more than that in beefing up our personnel at all the farm service agencies to handle this thing. We should be fair with the insurance agent. They are not getting 24.5 percent, they are not getting 27.5 percent. The average is about 10 percent.
Thomas Ewing: “The gentlewoman talked about a 27.5-percent commission, and I think in all due fairness to the insurance agents, the…”
Editor's note · Context
Discussing the commission rates for Federal crop insurance during a floor speech.
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