For the most part, if farmers couldn't buy (subsidized) crop insurance, they wouldn't farm PERIOD. Think about it like running a business. What business would have hundreds of thousands of dollars worth of equipment (Tractors, plows, etc.)and spend tens of thousands on seed, fertilizer, fuel, repairs etc. and not insure it??? You would be a be nice fool not to. Farming and ranching is too risky of an endeavor for private insurance, therefore the govt. has to step in and subsidize it. Also most farmers or ranchers couldn't get a loan without having insurance to back the loan up, the bank isn't going to lend money on something as risky as agriculture and not have some type of protection.
I'm just as conservative as any of you and I dislike the govt. very much but this is one area that the govt. is somewhat useful. Crop Insurance actually allows the small guy to stay in business. Think about it this way, If there were no subsidized agricultural insurance, the small guy who needs a loan or cant stand the loss of years of drought or poor harvest is out of business and agriculture as we know it would all become corporate. Yes there would still be hobby farms but farming as we know it would look a lot different.