The US crop insurance program provided by private insurers and backed by the Federal Government will be expanded following the passage of the US Farm Bill last week.

The scheme – which replaces disaster assistance – features crop cover delivered by insurers, with the Government subsidising premiums and claims costs.

Crop insurers welcomed the bill and Moody’s Investor Services says it is credit-positive for them.

The Government pays about 60% of premiums, with rates set by the Department of Agriculture.

The subsidy is forecast to cost the Government $US6.38 billion ($7.12 billion) this year. About 20 insurers offer the cover, including QBE, Ace and XL.

The catch-all bill includes farm subsidies, catfish inspection, food stamp assistance to the poor and a tax on fresh-cut Christmas trees. It has taken more than two years to pass because of resistance to cuts to food stamps and ideological splits between Democrats and Republicans.