Dairy subsidies

A new proposal for dairy industry basically makes dairy producers pay premiums in good times in order to get a bailout in bad times - basically this an insurance policy.  The proposal would be voluntary.

I have some concerns...
First, I don't really understand why the government needs to insure farmers.  Why can't they buy private insurance?
Second, and probably the explanation for the first point - I bet this program will loose money.
Third, as someone who doesn't consume dairy products, I fail to see why dairy is so important to our nation.  I
think beer subsidies would be a much better idea.
And finally, this quote cracked me up:

Some farmers objected to the federal government limiting how much milk they could produce, saying the answer to problems facing the dairy industry was less government interference, not more.

I completely agree - but if you want less government interference you also have to take less handouts.

HT: Vegan blog