Marcia Zarley Taylor DTN Executive Editor
Wed May 15, 2013 03:31 PM CDT

Crop Insurance Rebuttals

Critics like Iowa State University economist Bruce Babcock argue crop insurance overhead and premiums subsidies are bloated (see DTN's "Raising Cain Over Crop Insurance,"… in top news.) In a recent study for the Environmental Working Group, he contends that the harvest-price adjustment used in popular revenue insurance products more than doubled the cost of 2012's claims.

That's the provision that compensated insured corn growers at $7.50/bu. last fall, instead of the original $5.68 spring price. Without the harvest feature, claims would have run only $6 billion in 2012, Babcock says, not the record $17.2 ...

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