OBBB Premium Subsidy Increases in Basic, Optional, and Enterprise Units

Dylan Turner and Shawn Arita

No 391344, ARPC Brief from North Dakota State University

Abstract: The One Big Beautiful Bill Act (OBBB) introduces the first significant increase in crop insurance premium subsidy rates since 2000. While the legislation explicitly raises subsidies for Basic and Optional Units by 3–5 percentage points, corresponding increase in Enterprise Unit (EU) subsidies are likely due to statutory parity requirements in the Federal Crop Insurance Act. Estimates suggest these adjustments could raise EU subsidies by several percentage points at higher coverage levels. The total increase in premium support from OBBB is estimated to be approximately $460 million in additional annual benefits to U.S. producers.

Keywords: Agricultural and Food Policy; Crop Production/Industries; Farm Management; Risk and Uncertainty (search for similar items in EconPapers)
Date: 2025-07-16
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Persistent link: https://EconPapers.repec.org/RePEc:ags:arpcbr:391344

DOI: 10.22004/ag.econ.391344

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