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New data says crop insurance is responsive to price

Some previous studies on crop insurance have determined that the risk management tool is so critical to farmers that is unresponsive to price, but a new study by Cornell University says that that isn’t true.

Josh Woodard, a professor with Cornell, says that farmers would purchase less crop insurance if premium rates increased. In fact, he says that there has been an uptick in participation over the years when congress moved to provide premium support instead of ad hoc disaster payments.

Crop insurance was a big topic in both the House and Senate versions of the farm bill.

In 2017, crop insurance protected more than $100 billion worth of ag goods on 311 million acres of land.