Will a Price Decline Cause a Catastrophic Reduction in Ag’s Safety Net?

G. Art Barnaby, Jr. ( December, 2012 )

Summary

It is clear that the current major safety net for production agriculture is the crop insurance program. In 2012, 88% of the insured corn acres were covered with some type of revenue insurance. Over 86% of the insured soybean acres, 83% of the insured wheat acres, and 70% of the insured sorghum acres were also covered with some type of revenue insurance. Most of the insured acres (over 82%) were covered with Revenue Protection (RP) that includes the harvest price. The Group Risk Income Protection (GRIP), GRIP with harvest price option, and RP with the harvest price excluded accounted for the remaining acres with revenue insurance coverage.

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