AGree advocates for changes to the Federal Crop Insurance Program (FCIP) that acknowledge the risk-reducing benefits of conservation practices.
Federal crop insurance is a key risk management strategy for the majority of commodity crop farmers. In 2019, more than 370 million acres of farmland were covered by federal crop insurance. Crop insurance is also one of the largest expenditures under the farm bill, representing about 37% of the total farm portion of the farm bill or around $10 billion per year.
Mounting scientific evidence shows that conservation practice implementation reduces crop yield risk during times of drought, heavy precipitation, and flooding. Additionally, conservation practices provide multiple environmental benefits, including improved water quality and soil moisture management, carbon sequestration, and habitat.
Given high enrollment and significant federal subsidization, crop insurance has the potential to drive broader adoption of agricultural conservation practices that reduce risk and provide economic and ecological co-benefits. However, the FCIP also contains rules and restrictions that limit how farmers can practice conservation while maintaining eligibility for crop insurance.
AGree advances policy improvements to the FCIP to eliminate barriers to conservation and facilitates the development of new crop insurance products that help farmers cover the risk of adopting new conservation practices.
AGree advances policy changes to improve the actuarial soundness of the FCIP by incorporating conservation practices that are proven to reduce risk.
New Crop Insurance Offerings
AGree advises on and facilitates the development of new federal crop insurance offerings that help farmers transition to new conservation practices.
Recent Research and Recommendations
AGree publishes research and recommendations that explore complex and controversial aspects of the federal crop insurance program, alongside creative ideas for change.