Source: FARM DOC DAILY, UNIV. OF ILLINOIS, 1/25/17


According to the 2008 farm bill, the Federal Crop Insurance Program has a loss ratio objective of "not greater than 1.0." Thus, over time, crop insurance payments to farmers should not exceed total premiums. Total premiums are the sum of premiums paid by farms plus public premium subsides. This actuarial performance is examined for the last 15 crop years with complete data, or the 2001 through 2015 crops. 

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