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US: The federal crop insurance program - status and sustainability

Federal crop insurance is an important part of the farm safety net. As the program is currently structured, however, whether it is more of a constraint or benefit to a more sustainable agriculture system is open to debate. While agriculture sustainability is a multifaceted concept, if we look specifically at the diversification of cropping and livestock systems of production, publicly subsidized crop insurance may be inhibiting needed sustainable diversification of systems of production.

A recent report published by the U.S. Department of Agriculture’s (USDA) Risk Management Agency (RMA), The Risk Management Safety Net: Market Penetration and Market Potential, provides useful information on the current status of the complex array of insurance products available to US farmers. The report also provides insight into the direction and impact of crop insurance on agriculture sustainability. Highlights of the report are outlined on the NSAC blog.