The FAPRI Baseline Model of the Federal Crop Insurance Program

Since 1986 the federal crop insurance program has changed in several ways: the number of covered crops has increased dramatically; the number of insured acres and amount of total premiums have risen; and new styles of crop insurance policies have been introduced. Each change has had a significant impact on the cost of the program. Due to the increasing importance of crop insurance to agriculture\u27s risk management strategy, the Food and Agricultural Policy Research Institute developed a baseline model for the federal crop insurance program. This report outlines the construction of the model, previews preliminary results, and offers ideas for possible extensions