Time And Money Affect Ag Insurance Uptake

摘要

Farmers use crop insurance to protect themselves against risk — primarily against crop failure and low market prices. In the United States, the federal crop insurance program has grown steadily since the mid-1990s and become the single largest individual program providing support to farmers under the 2014 Farm Act. Growth in crop insurance programs — both in the United States and in developing countries — appears to be driven in part by premium subsidies from governments.Unlike previous research on the topic, which emphasizes a farmer's attitude toward risk as the primary driver of insurance uptake, this report analyzes the relationship between wealth, savings and insurance over time to identify alternative approaches to managing farm risk.