Crop Insurance Penetration in the United States, 2025

This report documents long-run patterns in market penetration of the United States Federal Crop Insurance Program (FCIP). Using administrative data from the Risk Management Agency (RMA), the analysis examines program uptake primarily through insured acreage, with national trends supplemented by insured liability and aggregate coverage levels. In general, FCIP penetration has increased substantially over the past five decades. However, the pace of growth has varied across measures and policy periods. Early expansion followed the introduction of premium subsidies and the establishment of a public-private delivery system. Later growth was shaped by adoption of revenue insurance, supplemental coverage endorsements, and index-based products. The long-run increase in program exposure reflects broadening participation across crops and regions. Disaggregated results reveal pronounced heterogeneity across commodities and regions. Field crops largely operate in mature, high penetration markets, while many specialty crops exhibit lower average penetration, greater volatility, and episodic participation. In contrast, forage, rangeland, and pasture insurance have exhibited sustained and structurally driven growth, largely reflecting the rapid adoption of rainfall index products, particularly in western states.