The US Senate has passed a bill to expand the subsidised crop insurance program.

However, the bill must now go to the Republican-controlled House of Representatives, which wants greater cuts to farm programs, so it may not survive in its current form.

The US Government subsidises about 65% of premiums on crop insurance sold by 17 insurers including Ace, Allianz and QBE.

The bill would increase subsidies for rice and peanuts and create a new insurance program for dairy farmers. Crop insurance also covers corn, soybeans, wheat, cotton, sugar and other crops.