The Four Percent Rule of Crop Insurance

With a looming farm bill debate, crop insurance stands as the largest single component of the crop farm safety net.  The program provides risk protection from low yield or revenue in return for a premium that producers pay.  These premiums … Continue reading

Will farm programs be cut even before the next farm bill starts?

I had the privilege of serving as a chief economist for the U.S. Senate Committee on Agriculture, Nutrition, and Forestry during the last farm bill debate.  The cost of legislation was paramount with the mandated goal of reducing the Congressional … Continue reading

Regional Differences in Crop Insurance Base Rates

Base county rates reflect the starting point for crop insurance rates for an insured crop in a particular county.  A particular insured unit’s rate will be derived by adjusting the base county rate to reflect yield versus revenue coverage, coverage level, … Continue reading

Crop Insurance Subsidy Per Policy

It is crop insurance sign up time and I did a quick analysis of 2015 crop insurance subsidy per policy by crop for the entire U.S.  Note subsidy is a function of rates, coverage levels, unit structure, quantity and value … Continue reading

Five things you need to know about County-triggered Shallow Loss Programs

  The Supplemental Coverage Option (SCO), Stacked Income Protection Program (STAX) insurance and county Agricultural Risk Coverage (ARC) programs in the new farm bill are novel risk protection products.  All three cover a band of shallow losses and leave the … Continue reading

Supplemental Coverage Available for 2015 Mississippi Winter Wheat

The Supplemental Coverage Option (SCO) crop insurance endorsement will be available to winter wheat producers in Bolivar, Coahoma, Sunflower, Tallahatchie and Washington counties for 2015. SCO was authorized in the Agricultural Act of 2014 and will provide an indemnity payment … Continue reading

A Look at U.S. Crop Insurance “Buy-Up” Participation

Crop insurance continues to gain importance which is reflected in the 2014 Farm Bill. Given the extreme weather events in the past few years, coupled with price uncertainty, U.S. producers are aware of the pitfalls of not having insurance. However, … Continue reading