Crop Insurance Efficiently Delivered
January 4th, 2007 by David Graves
The federal crop insurance program is a unique public-private partnership that combines the financial resources of the federal government with the operating efficiency of private sector insurance companies, reinsurers and thousands of crop insurance agents across the country. Over the past 25 years the program has evolved from an arrangement in which agents were selling government policies into a partnership where companies share the risk with the government and have their own private capital at risk. The modern crop insurance program is based on the premise that, given the proper incentives and reasonable regulation, the private sector can deliver risk management protection to America’s farmers more efficiently than the federal government. Results indicate this partnership is working very successfully.
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