This study estimates the government costs of federal crop insurance under the framework of the Crop Insurance Reform Act of 1994. The history of federal crop insurance is outlined to examine how MPCI has evolved. The 1994 Act addressed two of the major problems of MPCI: low participation and additional disaster assistance. Total government costs for the FCIC and MPCI are estimated to be more than $2 billion, on average, from 1996 to 2003, with half of this amount being in the form of premium subsidies paid by the government.