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Focus on Farmers and Crop Insurance

corn-field

 

This report serves as a background of our nation's disaster assistance program. Initially, the crop insurance program only covered production or yield losses, however in 1997, this changed when for the first time, wheat farmers were given the opportunity to protect against revenue losses. This new revenue insurance has expanded to other crops over the years and as of 2008, accounted for 74 percent of the total program liability. With instances such as these, the current crop insurance program proves to be both efficient and effective.

This paper by John Grgurich discusses the need for the crop insurance program during drought years, such as 2012, and understanding its effects on farmers. As the author explains, crop insurance is the "silver lining" for farmers who would be in financial trouble because of weather conditions. But because of the industry's effective delivery of indemnity payments, this will help our farmers continue to grow the necessary crops.