Crop Insurance Satisfies Policy Objectives
April 30th, 2007 by David Graves
Crop insurance is a federal government program developed to satisfy certain public policy objectives regarding aspects of risk management inherent to production agriculture enterprises. AIPs agree to sell and service a predetermined and pre-approved program to all farmers, ranchers and growers. They are not free to turn away higher –risk farmers or smaller farmers whose premiums are not large enough to cover the cost of sales and service. They are required to sell to all farmers and for all commodities in a state where they do business.