When Disaster Strikes the Billing Date: A Scoping Review of Crop Insurance Interest Deferrals

Francis Tsiboe and Sandro Steinbach

No 364685, Agricultural Risk Policy Center from North Dakota State University

Abstract: This white paper reviews the Federal Crop Insurance Corporation’s (FCIC) deferral of interest on unpaid premiums after natural disasters. Since the 2012 shift to an August 15 billing date, FCIC has routinely granted 60-day waivers during severe weather or national emergencies, providing producers liquidity but delaying federal receipts. Between 2019 and 2023, over $18 billion in premiums were deferred, representing $510 million in implicit subsidies. The analysis examines effects on actuarial soundness, budget scoring, and moral hazard, and outlines policy options to balance producer relief with fiscal discipline amid rising weather risks.

Keywords: Agricultural and Food Policy; Agricultural Finance; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 7
Date: 2025-08-08
New Economics Papers: this item is included in nep-agr and nep-env
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/364685/files/A ... 0Paper%202025-04.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:ndsuag:364685

DOI: 10.22004/ag.econ.364685

Access Statistics for this paper

More papers in Agricultural Risk Policy Center from North Dakota State University Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().