Crop Insurance Is A Complex Program
April 3rd, 2007 by David Graves
The modern federal crop insurance program has grown more complex, including more policy choices and more stringent regulations. One factor important to the current level of success of the federal crop insurance program is the amount of monetary support provided by Congress to encourage farmer participation. However, another important factor in the modern program’s success is the growth in the number of policy options. A larger number of policy options, while increasing complexity, provide the program with the capacity and the flexibility not only to insure a wider array of agriculture enterprises but also to better customize risk management strategies to individual farm and farmer needs and requirements. Finally, more complexity generates more regulations. And while regulations are certainly burdensome, they do generally serve to help enhance program integrity, which is a fundamental requirement for continuing a high level of congressional and public support for the crop insurance program.