Source: FARM DOC DIALY, UNIV. OF ILLINOIS, 3/15/1


Cost of Federal Crop Insurance is an on-going farm policy issue. President Trump proposed several changes to reduce its cost in his Fiscal Year 2019 budget. The changes include reducing the all insurance program subsidy from the 62% rate of recent years to 48%. A long standing goal of crop insurance is to insure a large share of acres to reduce demand for ad hoc disaster assistance. Reducing the subsidy rate may reduce share of acres insured and thus conflict with this policy goal.

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