Private crop insurance companies see shrinking returns

private Crop Insurance

These insurers have experienced a notable drop in their returns since the SRA was renegotiated in 2010. Private crop insurance companies are experiencing a notable downward trend in their return figures. This has been a consistent situation since the Standard Reinsurance Agreement (SRA) was renegotiated in 2010. The SRA renegotiation between insurers and the federal government marked a significant change in the direction of that business. The change in returns have also aligned smoothly with the Risk Management Agency’s benchmarks. The U.S. Department of Agriculture’s Risk Management Agency laid out…

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Federal crop insurance participation less likely among wealthy growers

crop insurance program - farm

The farmers who are most likely to buy this coverage aren’t the ones who are making the most money. A new report showed farmers are less likely to use federal crop insurance if they are among the wealthiest. This coverage is meant to help protect growers against risks such as low output prices and crop failure. The American program has been experiencing steady growth since the 90s. Federal crop insurance is now the biggest individual producer supporting program under the farm bill of 2014. This trend in growing federal crop…

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Crop insurance claims are starting to be submitted for damaged wheat

us crop insurance program

Farmers in many areas have found their fields struck by frost, causing considerable issues for harvest. The crop insurance claims have now started to be filed in higher numbers as a result of the wheat that has been damaged by the frosts that have struck several parts of the country, and many agents feel that the numbers will continue to climb. Some agents think that this year will see a higher number of claims of this nature than other years. North Dakota was especially affected by the recent frosts. While…

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Crop insurance gets bigger as the latest farm bill’s costs rise

crop insurance program

The federally subsidized program will now offer a minimum of three new forms of protection. The most costly part of the safety net for American farmers, the federally subsidized crop insurance program, will now have at least three new forms of coverage available to growers across the country. The farm bill draft is currently pending in both the Senate and the House of Representatives. It has been suggested that the new form of crop insurance could generate a cost that is 10 percent higher than the expense it currently generates.…

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Study exposes dubious nature of crop insurance in the US

Crop Insurance

Crop insurance program highlighted in new study Last year, the worst drought the U.S. has experienced in over 50 years brought significant attention to the country’s crop insurance program. The drought led to record payouts from the crop insurance program, which is subsidized with taxpayer money. The program is designed to provide some financial aid to farmers who lose their crops due to natural disasters and other catastrophic events. This was not the case for the 2012 drought, however, according to a new study from the Iowa State University. Study…

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