NU Online News Service, Aug. 30, 3:35 p.m. EDT

Despite a cut in federal subsidy to the crop insurance program, crop insurers are expected to remain profitable, but they likely won’t see the 20 percent-plus returns they enjoyed in the past, a report said.

In a report from New York-based investment banking institution Keefe, Bruyette & Woods, analysts said that with the expiration of the standard reinsurance agreement (SRA) from the U.S. government, insurers will see reduced profitability and the impact is expected to be “a modest negative” to companies that “are substantial players” in the crop insurance program.

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