Policy Studies Agriculture

Two changes to crop insurance to improve equity and efficiency

Key Points

Crop insurance program objectives can be met at far lower cost.
Means testing crop insurance subsidies will not cause farmers to drop out of the program.
Subsidizing the most expensive type of crop insurance increases cost with no gain in program participation.

Risk management needs of farmers can be met at far lower cost to taxpayers by reforming crop insurance.

 

 

 

Image credit: tomasworks

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