IDEAS home Printed from https://ideas.repec.org/p/ags/arpcbr/391344.html

OBBB Premium Subsidy Increases in Basic, Optional, and Enterprise Units

Author

Listed:
  • Turner, Dylan
  • Arita, Shawn

Abstract

The One Big Beautiful Bill Act (OBBB) introduces the first significant increase in crop insurance premium subsidy rates since 2000. While the legislation explicitly raises subsidies for Basic and Optional Units by 3–5 percentage points, corresponding increase in Enterprise Unit (EU) subsidies are likely due to statutory parity requirements in the Federal Crop Insurance Act. Estimates suggest these adjustments could raise EU subsidies by several percentage points at higher coverage levels. The total increase in premium support from OBBB is estimated to be approximately $460 million in additional annual benefits to U.S. producers.

Suggested Citation

  • Turner, Dylan & Arita, Shawn, 2025. "OBBB Premium Subsidy Increases in Basic, Optional, and Enterprise Units," ARPC Brief 391344, North Dakota State University.
    • Handle: RePEc:ags:arpcbr:391344
    DOI: 10.22004/ag.econ.391344
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/391344/files/ARPC%20Brief%202025-05.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.391344?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Tsiboe, Francis & Turner, Dylan, 2023. "The crop insurance demand response to premium subsidies: Evidence from U.S. Agriculture," Food Policy, Elsevier, vol. 119(C).
    2. Francis Tsiboe & Dylan Turner & Jisang Yu, 2025. "Utilizing large‐scale insurance data sets to calibrate sub‐county level crop yields," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 92(1), pages 139-165, March.
    Full references (including those not matched with items on IDEAS)

    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. Bingxia Wang & Mohd Azmi Haron & Zailan Siri, 2024. "The Impact of Air Pollution Risk on the Sustainability of Crop Insurance Losses," Sustainability, MDPI, vol. 16(19), pages 1-23, October.
    2. Zhang, Qi & Gong, Jian & Wang, Ying, 2024. "How resilience capacity and multiple shocks affect rural households’ subjective well-being: A comparative study of the Yangtze and Yellow River Basins in China," Land Use Policy, Elsevier, vol. 142(C).
    3. Tsiboe, Francis, 2025. "Routine Actuarial Adjustments Cut Taxpayer Cost in Subsidized Agricultural Insurance," ARPC Working Paper 386093, North Dakota State University.
    4. Tsiboe, Francis, & Turner, Dylan & Aglasan, Serkan & Rejesus, Roderick M, 2026. "Rate Revisions and Risk Transfer Incentives in Agricultural Insurance," ARPC Working Paper 396238, North Dakota State University.
    5. Nusrat Akber & Kirtti Ranjan Paltasingh & Ashok K. Mishra, 2025. "Does crop insurance ensure food security for Indian farmers? Evidence from a nationally representative survey," Agribusiness, John Wiley & Sons, Ltd., vol. 41(1), pages 217-237, January.
    6. Dylan Turner & Francis Tsiboe & Hunter Biram & Lawson Connor, 2025. "Actuarial implications of prevented planting coverage," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 47(1), pages 394-415, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    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:ags:arpcbr:391344. 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: AgEcon Search (email available below). General contact details of provider: https://www.ndsu.edu/ .

    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.