Studies from U.S. Department of Agriculture (USDA) Reveal New Findings on Crop Insurance (Risk Reduction Impacts of Crop Insurance In the United States): Agriculture – Crop Insurance

2025 JUN 20 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Fresh data on Agriculture - Crop Insurance are presented in a new report. According to news reporting from Kansas City, Missouri, by NewsRx journalists, research stated, “The Federal Crop Insurance Program (FCIP) offers insurance policies that reduce the risk of declining farm revenues by increasing mean revenue, decreasing revenue variability, or some combination of both.”

Financial support for this research came from United States Department of Agriculture (USDA).

The news correspondents obtained a quote from the research from the U.S. Department of Agriculture (USDA), “Using historic data from the FCIP, this paper estimates the effect that different insurance policies have on mean revenue and revenue variability and to what degree indemnity payments are converted into reduced revenue variability. The results suggest that on average, a 1% increase in revenue results in a 2.25% reduction in inter-crop-year revenue variability.”

According to the news reporters, the research concluded: “Most of this effect is found to be attributed to individual revenue and yield protection plans, which are the most participated-in insurance plans and generally produce simultaneous increases in mean revenue and decreases in revenue variability.”

This research has been peer-reviewed.

For more information on this research see: Risk Reduction Impacts of Crop Insurance In the United States. Applied Economic Perspectives and Policy, 2025. Applied Economic Perspectives and Policy can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Oxford University Press - http://www.oup.com/; Applied Economic Perspectives and Policy - aepp.oxfordjournals.org)

Our news journalists report that additional information may be obtained by contacting Francis Tsiboe, USA. Dept. of Agriculture (USDA), Economic Research Service, Kansas City, MO, United States. Additional authors for this research include Dylan Turner, Katherine Baldwin, Brian Williams, Matthew Miller and Erik Dohlman.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1002/aepp.13513. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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