Evolution of U.S. Federal Crop-Insurance Plans

Producers participating in the Federal Crop Insurance Program (FCIP) must choose among insurance plans, coverage levels, and unit structures that jointly shape the risk protection provided by their policy. This brief examines the historical evolution of crop insurance plan offerings, participation patterns, and actuarial performance from 1989 through 2024. Using national liability, acreage, and long-run loss ratios, we document how the FCIP policy menu expanded from eight active plans in 1989 to more than thirty-five plans today, even as insured liability became increasingly concentrated. Participation has shifted decisively from yield-only protection toward revenue-based COMBO plans, particularly Revenue Protection, which now dominates program exposure. Area- and index-based plans offer lower premiums but face persistent basis risk and limited adoption, while supplemental endorsements increasingly layer coverage onto core policies. Livestock and forage plans have expanded rapidly in recent years. Despite broad plan availability, fiscal exposure remains concentrated, suggesting that incremental refinement of pricing and design, rather than further proliferation, may strengthen the long-run stability of the FCIP portfolio.