FAPRI Baseline Model of the Federal Crop Insurance Program, The
Chad E. Hart, Darnell B. Smith
July 1998 [98-TR 40]
Hart, C.E. and D.B. Smith. 1998. "FAPRI Baseline Model of the Federal Crop Insurance Program, The." Technical report 98-TR 40. Center for Agricultural and Rural Development, Iowa State University.
Since 1986 the federal crop insurance program has changed in several ways: the number of covered crops has increased dramatically; the number of insured acres and amount of total premiums have risen; and new styles of crop insurance policies have been introduced. Each change has had a significant impact on the cost of the program. Due to the increasing importance of crop insurance to agriculture's risk management strategy, the Food and Agricultural Policy Research Institute developed a baseline model for the federal crop insurance program. This report outlines the construction of the model, previews preliminary results, and offers ideas for possible extensions.