Pasture, rangeland, and forage-area crops have driven the growth in insured acres since 2007
The 2018 Farm Act continues to emphasize support for farm risk management and to expand coverage within the Federal Crop Insurance Program (FCIP) that was established in the 2014 Farm Act. Since 2007, the largest growth in insured acres has come from the introduction of coverage for pasture, rangeland, and forage areas. The 2018 Farm Act introduces a catastrophic coverage option for these policies, which is likely to further increase the total acres insured for pasture, rangeland, and forage areas. Premiums for catastrophic coverage policies are fully subsidized (farmers pay no premium, only an administrative fee), while higher levels of coverage are only partially subsidized (farmers pay part of the premium). The availability of cheaper policies may induce additional participation in FCIP. However, the county base values that are used to assess the economic value of insured production covered by pasture, rangeland, and forage policies will be lower in the 2019 crop year than in previous years. In turn, this decrease lowers the value of insured hay and forage production and may reduce the demand for pasture, rangeland, and forage area policies. This chart appears in the ERS crop insurance topic page of The Agriculture Improvement Act of 2018: Highlights and Implications, published February 2019.
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