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Crop Insurance Basics: Risk Mitigation and Risk Management

Risk mitigation and risk management are two sides of the same coin when it comes to improving agricultural outcomes and promoting climate-smart decisions. On the front of the coin, we have risk mitigation. This side represents all the steps farmers and ranchers take to reduce the amount of risk they face. For example, farmers utilizing precision […]

Crop Insurance 101

Crop insurance is a critical program for maintaining our nation’s supply of food, fuel and fiber. It helps farmers and ranchers navigate the risks of farming and plant again after a disaster while providing them the necessary stability to continue investing in long-term conservation practices. But with terms like “Actual Production History” or “Whole-Farm Revenue […]

Crop Insurance Basics: Moral Hazard

Moral hazard is a phrase commonly used in the business community that simply means people act or perform differently when they are fully insulated from risk. An entry on the topic in Investopedia.com explained it like this: We encounter moral hazard every day – tenured professors becoming indifferent lecturers, people with theft insurance being less […]

USDA Chief Actuary Highlights Crop Insurance Strengths

America’s farmers and ranchers face an incredible number of risks every year, ranging from catastrophic weather events to market disruptions. That’s why rural America relies on the risk management tools provided by the Federal crop insurance program. Dr. Thomas Worth, Chief Actuary at the U.S. Department of Agriculture’s (USDA) Risk Management Agency, recently spoke at an Agri-Pulse forum and […]

Celebrating the Incredible Women of Crop Insurance

Last week, as we celebrated Women in History Month, the U.S. Department of Agriculture (USDA) hosted a special conversation to honor the women who work in the crop insurance industry. Kendall Jones, chair of the National Crop Insurance Services (NCIS) and president and CEO of ProAg, and crop insurance agents and industry leaders Iris Sáenz […]

Crop Insurance Basics: Incentives

When policymakers prioritize specific behaviors or actions, they usually turn to incentives to jumpstart the process. For example, the U.S. government has long promoted the benefits of homeownership to individual families and the economy as a whole. Hence, lawmakers introduced mortgage interest deductions on income tax filings to make homeownership more affordable and attractive. In […]

Crop Insurance Basics: Actual Production History

One of crop insurance’s defining attributes is its self-correcting nature. That is, farmers who exhibit more risk pay more than those who exhibit less – much in the same way that car insurers reward safe drivers. This is done by collecting and analyzing a producer’s Actual Production History (APH), which takes into account a grower’s […]

Crop Insurance Basics: Available to All

In the everyday insurance world, coverage may sometimes be hard to come by. That can be true if you’ve had a disaster – such as a fire in your home – or live in an area at high risk for disaster. Car insurance coverage may be more expensive or even denied if you are a […]

Agricultural Coalition Sends Letters Urging Federal Leaders to Protect Crop Insurance

With a new Administration taking control in Washington, D.C., and many new members joining Congress, it’s more important than ever to remind elected leaders the crucial role crop insurance plays in protecting farmers, ranchers, and rural communities. That’s why a group of 58 farming, banking, and conservation organizations sent letters last week to House and Senate budget […]

Crop Insurance Basics: Good Farming Practices

Suppose you’re a homeowner who intentionally neglects your property, refusing to make basic repairs and even creating unsafe conditions like exposed wires or leaky pipes. Now suppose your house, not surprisingly, is damaged from a resulting fire or flood. Are you entitled to a full homeowner’s insurance payout? Of course not. A homeowner’s policy has […]