Crop Insurance
Coverage for farm yield or revenue losses from drought, flood, hail, freeze, and pests.
Overview
In the United States the federal program run by the USDA Risk Management Agency dominates, with policies sold and serviced by private companies. Yield protection pays shortfalls against historical average yields, and revenue protection, the majority buy, covers price and yield combined using futures at set sign up windows, letting farmers lock revenue before planting. Premiums are heavily subsidized, roughly 60 percent on average, and catastrophic coverage costs an administrative fee only. Private hail and named peril products fill gaps. Acreage reports, planting deadlines, and good farming practices are conditions of payment. The program insures well over 100 million acres and anchors US farm policy debates in every farm bill.
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