Crop-Hail Insurance in the United States

Leon B. Perkinson

No 320724, Miscellaneous Publications from United States Department of Agriculture, Economic Research Service

Abstract: Excerpts from the Summary: Crops may be damaged or destroyed by many natural hazards, such as drought, freezing, flood, wind, insects, and hail. A farmer may lose all or part of his income if his crops fail. One hazard for which insurance is available is hail damage. In 1963, farmers purchased more than $2. 8 billion of protection against hail. This was double the amount purchased in 1951. About 75 percent of the total coverage was concentrated in three regions--the Corn Belt, Northern Plains, and Appalachian Regions. Farmers are increasing their use of crop-hail insurance. From 1952 to 1963, the percentage of total crops covered by this insurance rose from 7.6 to 13.1 percent. Farmers in the Corn Belt had the highest coverage, 25 percent of their total crop value, and those in the Delta States the lowest, 1 percent. In 1963, corn, wheat, tobacco, soybeans, and cotton were the most heavily insured crops, accounting for 80 percent of the total insurance coverage. Crop-hail insurance is offered by mutual associations or cooperatives which are owned by its policy-holders, stock fire and marine insurance companies, State hail insurance departments, and the Federal Crop Insurance Corporation as part of its all-risk insurance program. The Federal crop insurance differs from regular crop-hail insurance in that an individual must insure all acres of a particular crop in which he has an interest within the county; that it be purchased before planting; and that it cover production costs only.

Keywords: Agricultural and Food Policy; Crop Production/Industries; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 24
Date: 1965-09
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:uersmp:320724

DOI: 10.22004/ag.econ.320724

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