FARM BUSINESS NEWS
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," http://goo.gl/… 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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