Estimating the Costs of MPCI Under the 1994 Crop Insurance Reform Act
Chad E. Hart, Darnell B. Smith
March 1996 [96-WP 158]
Hart, C.E. and D.B. Smith. 1996. "Estimating the Costs of MPCI Under the 1994 Crop Insurance Reform Act." Working paper 96-WP 158. Center for Agricultural and Rural Development, Iowa State University.
The 1994 Crop Insurance Reform Act addressed two major problems of MPCI (multiple peril crop insurance): low participation and additional disaster assistance. In this study, total government costs for the FCIC (Federal Crop Insurance Corporation) and MPCI are estimated to be more than $2 billion, on average, from 1996 to 2003, with half of this amount being in the form of premium subsidies paid by the government.