Farm expenses for insurance products have nearly doubled in the past 10 years
Per-farm expenses for farm-related insurance products have nearly doubled in the past 10 years, and several factors have contributed to this increase. Federal crop insurance premiums are a large component of total insurance expenses for U.S. farmers, and total acres enrolled in Federal crop insurance increased 32 percent between 2002 and 2012. During the same period, total U.S. farmer-paid premiums for Federal crop insurance increased to $4.14 billion from $1.17 billion (based on reports from USDA’s Risk Management Agency, which administers the Federal crop insurance programs). In addition to increasing acreage enrolled in Federal crop insurance, a farm’s premium expenses are affected by the level of insurance coverage purchased and by commodity prices, both of which increased during this period. This chart is based on data available in the ERS data product, ARMS Farm Financial and Crop Production Practices, updated November 2013.
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