The Use of Enterprise Units in Crop Insurance

The 2008 Farm bill provided for an alternative level of crop insurance subsidies for Enterprise Units relative to Basic and Optional Units.  As you can see in Table 1 the subsidy for enterprise units are sometimes as much as 20% … 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

The ARC County Yield Problem – Not if, But When and Where

The county yields plugged into the Agricultural Risk Program (ARC) calculation have come under fire recently for perceived inaccuracy and varying dramatically across nearby counties.  I was there when the last farm bill was written, there were concerns about the … 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