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Farm incomes can vary widely from year to year, depending on events as diverse as weather and foreign markets, and farmers have a variety of tools to deal with risks. ERS research on farm risk management examines yield and price uncertainty, crop and revenue insurance, use of futures and options, and other farm risk management strategies.
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U. S. Crop Insurance: Premiums, Subsidies, and Participation. U.S. crop insurance programs, traditionally limited to yield insurance products, now include a variety of insurance products. Since the early 1980s, the Federal government has subsidized premiums, effectively lowering the cost of crop yield and revenue insurance coverage to producers. Rises in premium subsidies in 2001 and the addition of premium discounts in 1999 and 2000 have increased participation in insurance programs, and producers have moved to higher coverage levels.
web administration: webadmin@ers.usda.gov
updated: June 6, 2002
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