IDEAS home Printed from https://ideas.repec.org/p/cbo/report/53375.html
   My bibliography  Save this paper

Options to Reduce the Budgetary Costs of the Federal Crop Insurance Program

Author

Listed:
  • Congressional Budget Office

Abstract

The federal crop insurance program helps protect agricultural producers from losses by offering insurance for their crops—principally corn, soybeans, wheat, and cotton. Federal spending on the program has averaged about $9 billion annually over the past five years. That spending has mostly gone toward premium subsidies for agricultural producers; a smaller portion reimburses private insurance companies for the administrative and operating costs of providing crop insurance. The government also shares in those companies’ losses and gains from the policies.

Suggested Citation

  • Congressional Budget Office, 2017. "Options to Reduce the Budgetary Costs of the Federal Crop Insurance Program," Reports 53375, Congressional Budget Office.
    • Handle: RePEc:cbo:report:53375
    as

    Download full text from publisher

    File URL: https://www.cbo.gov/system/files/115th-congress-2017-2018/reports/53375-federalcropinsuranceprogram.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zulauf, Carl & Schnitkey, Gary, 2016. "Increasing Crop Insurance Coverage Levels: An Assessment," farmdoc daily, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics, vol. 6, June.
    2. Keith H. Coble & Thomas O. Knight & Rulon D. Pope & Jeffery R. Williams, 1996. "Modeling Farm-Level Crop Insurance Demand with Panel Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 439-447.
    3. Woodard, Joshua, 2016. "Estimation of Insurance Deductible Demand under Endogenous Premium Rates," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236151, Agricultural and Applied Economics Association.
    4. Barry K. Goodwin, 1993. "An Empirical Analysis of the Demand for Multiple Peril Crop Insurance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(2), pages 425-434.
    5. Elizabeth Marshall, & Marcel Aillery, & Scott Malcolm, & Ryan Williams,, 2015. "Climate Change, Water Scarcity, and Adaptation in the U.S. Fieldcrop Sector," Economic Research Report 262203, United States Department of Agriculture, Economic Research Service.
    6. White, T. Kirk & Hoppe, Robert A., 2012. "Changing Farm Structure and the Distribution of Farm Payments and Federal Crop Insurance," Economic Information Bulletin 120309, United States Department of Agriculture, Economic Research Service.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Robert W. Klein & Harold Weston, 2020. "Government insurance for business interruption losses from pandemics: An evaluation of its feasibility and possible frameworks," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 23(4), pages 401-440, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lavorato, M. & Braga, M., 2018. "Assessing the effects of premium subsidies on crop insurance demand: An analysis for grain production in Southern Brazil," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276025, International Association of Agricultural Economists.
    2. Ashok Mishra & Barry Goodwin, 2006. "Revenue insurance purchase decisions of farmers," Applied Economics, Taylor & Francis Journals, vol. 38(2), pages 149-159.
    3. Coleman, Jane A. & Shaik, Saleem, 2009. "Time-Varying Estimation of Crop Insurance Program in Altering North Dakota Farm Economic Structure," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49516, Agricultural and Applied Economics Association.
    4. Chen, Shu-Ling & Miranda, Mario J., 2006. "Modeling Yield Distribution In High Risk Counties: Application To Texas Upland Cotton," 2006 Annual meeting, July 23-26, Long Beach, CA 21392, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Poon, Kenneth, 2013. "Risky Business: Factors Affecting Participation Rate of AgriStability," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150978, Agricultural and Applied Economics Association.
    6. Rogna, Marco & Schamel, Günter & Weissensteiner, Alex, 2019. "Choosing Between Hail Insurance and Anti-Hail Nets: A Simple Model and a Simulation among Apples Producers in South Tyrol," 2019: Trading for Good - Agricultural Trade in the Context of Climate Change Adaptation and Mitigation... Symposium, June 23-25, 2019, Seville, Spain 312593, International Agricultural Trade Research Consortium.
    7. Woodard, Joshua, 2016. "Estimation of Insurance Deductible Demand under Endogenous Premium Rates," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236151, Agricultural and Applied Economics Association.
    8. ODonoghue, Erik & Tulman, Sarah, 2016. "The Demand for Crop Insurance: Elasticity and the Effect of Yield Shocks," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235623, Agricultural and Applied Economics Association.
    9. O'Donoghue, Erik J., 2013. "The Demand for Crop Insurance: How Important are the Subsidies?," 2013 AAEA: Crop Insurance and the Farm Bill Symposium 157282, Agricultural and Applied Economics Association.
    10. Fabio G Santeramo, 2019. "I Learn, You Learn, We Gain Experience in Crop Insurance Markets," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(2), pages 284-304, June.
    11. Woodard, Joshua D. & Chiu Verteramo, Leslie & Miller, Alyssa P., 2015. "Adaptation of U.S. Agricultural Production to Drought and Climate Change," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205903, Agricultural and Applied Economics Association.
    12. Enjolras, Geoffroy & Sentis, P., 2008. "The Main Determinants of Insurance Purchase: An Empirical Study on Crop Insurance Policies in France," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44395, European Association of Agricultural Economists.
    13. Farrin, Katie & Miranda, Mario J. & O'Donoghue, Erik, 2016. "How Do Time and Money Affect Agricultural Insurance Uptake? A New Approach to Farm Risk Management Analysis," Economic Research Report 262194, United States Department of Agriculture, Economic Research Service.
    14. Cabas, Juan H. & Leiva, Akssell J. & Weersink, Alfons, 2008. "Modeling Exit and Entry of Farmers in a Crop Insurance Program," Agricultural and Resource Economics Review, Cambridge University Press, vol. 37(1), pages 92-105, April.
    15. Ming Wang & Tao Ye & Peijun Shi, 2016. "Factors Affecting Farmers’ Crop Insurance Participation in China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(3), pages 479-492, September.
    16. Chen, I-Chun & Du, Xiaodong & Mitchell, Paul D., 2018. "Policy Implications of Joint versus Separate Estimation of Crop Insurance Demand," 2018 Annual Meeting, August 5-7, Washington, D.C. 273878, Agricultural and Applied Economics Association.
    17. Shaik, Saleem & Atwood, Joseph A., 2002. "An Examination Of Different Types Of Adverse Selection In Federal Crop Insurance," 2002 Annual Meeting, July 28-31, 2002, Long Beach, California 36649, Western Agricultural Economics Association.
    18. Heidelbach, Olaf, 2007. "Efficiency of selected risk management instruments: An empirical analysis of risk reduction in Kazakhstani crop production," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 40, number 92323.
    19. Davidson, Kelly A. & Goodrich, Brittney K., 2020. "Nudge to Insure: Can Informational Nudges Increase Enrollment in Pasture, Rangeland and Forage Rainfall Index Insurance?," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304550, Agricultural and Applied Economics Association.
    20. Tao Ye & Yangbin Liu & Jiwei Wang & Ming Wang & Peijun Shi, 2017. "Farmers’ crop insurance perception and participation decisions: empirical evidence from Hunan, China," Journal of Risk Research, Taylor & Francis Journals, vol. 20(5), pages 664-677, May.

    More about this item

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbo:report:53375. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/cbogvus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.