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Federal Crop Insurance: A Primer

Federal Crop Insurance: A Primer

          
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About the Book

The federal crop insurance program (FCIP) offers farmers the opportunity to purchase insurance coverage against financial losses caused by a wide variety of perils, including certain adverse growing and market conditions. The federal government subsidizes the premiums that farmers pay for these insurance policies to encourage farmer participation. Farmers can choose among many types of policies and policy options to customize the coverage to their farm businesses' specific needs. Private-sector companies sell and service the policies; the U.S. Department of Agriculture (USDA) plays critical roles in subsidizing, regulating, and reinsuring the policies. The FCIP was created in 1938 as part of the agricultural policy response to the Great Depression. The FCIP plays a prominent role in helping producers manage financial risk. In crop year 2019, the program sold more than 2 million policies and insured crops and livestock valued at more than $116 billion, equivalent to about 28% of the value of U.S. agricultural production. More than 90% of planted acres for corn, soybeans, and cotton and more than 85% of wheat planted acres were insured through the FCIP. In all, the FCIP provided coverage for 124 commodities and offered 19 types of insurance policies. Sixteen companies sold crop insurance to farmers through the program, and farmers enrolled a record high 379.9 million acres in 2019.The FCIP is a central component of the federal farm safety net, which is a collection of programs that provide risk protectionand financial support to U.S. farmers in times of low farm prices and natural disasters. For 2014-2018, the FCIP accountedfor the largest share (52%) of payments to farmers from farm safety net programs. The FCIP also supports conservationpolicy goals through conservation compliance requirements and contributes to the stability of agricultural credit markets.Congress may be interested in understanding how FCIP implementation affects which farmers purchase crop insurance andthe types of insurance they purchase, as well as the associated costs to the U.S. taxpayer for providing that coverage.Congress may also be interested in ways to expand coverage options, improve the program's efficiency and actuarialperformance, provide outreach to farmers who have not previously participated in the program, and in evaluating the program against its policy objectives for the agricultural sector.


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Product Details
  • ISBN-13: 9798715485717
  • Publisher: Independently Published
  • Publisher Imprint: Independently Published
  • Height: 280 mm
  • No of Pages: 52
  • Spine Width: 3 mm
  • Width: 216 mm
  • ISBN-10: 8715485714
  • Publisher Date: 02 Mar 2021
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Weight: 145 gr


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