Time to Revisit Crop Insurance Premium Subsidies

  title={Time to Revisit Crop Insurance Premium Subsidies},
  author={Bruce A. Babcock},
In 2000, Congress decided to move away from a fixed-dollar-per-acre premium subsidy to a subsidy percentage that applies to any crop insurance product offered. This change reduced the cost to farmers of moving from yield insurance to revenue insurance by more than 50%. In addition, Congress decided to pay a large proportion of the additional premium for higher coverage levels, paying for more than half the cost of moving from the 65% to the 75% coverage level and about 25% of the additional… CONTINUE READING