Asked by Andrea Barisic on May 21, 2024
Verified
Discuss the two new types of crop insurance programs which were introduced in the Agricultural Act of 2014.
Crop Insurance Programs
Governmental or private insurance schemes designed to protect farmers against the financial losses due to crop failures caused by weather or other unforeseen factors.
Agricultural Act
Legislation aimed at regulating agricultural markets, prices, and subsidies; specifics depend on the country and the time period.
- Scrutinize the impact of policy decisions made by the government on agricultural economy, with a focus on price supports and subsidies.
Verified Answer
BE
Brittanie EastwoodMay 22, 2024
Final Answer :
With price loss coverage, farmers who pay the insurance premium are guaranteed an insurance payment if the price of their crop falls below a specified value, such as $3.50 per bushel of wheat. Agricultural risk coverage depends on the total revenue generated by all of the farmers in a given county who plant the same crop in a given year. The program makes insurance payments to participating farmers if the total revenue collectively received by all the farmers planting the crop in the county falls below a specific value, such as $150 million for corn producers in Kossuth County, Iowa.
Learning Objectives
- Scrutinize the impact of policy decisions made by the government on agricultural economy, with a focus on price supports and subsidies.
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