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| Rates are directly figured based on risk of loss. So the higher the risk the higher the premium. So a 70/acre premium for corn in a fring area means farmer is paying about 35. If the subsidy went away it would get reflected in land values, so 135/acre cash rent is now 100. If land values get cheap enough there gets to be a better use for the land. I agree in high producing/ low risk areas it would have little effect. When you only have a below avg crop 1 out of 10 years insurance isnt nearly as important as an area than that is below avg 3 out of 10. | |
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Crop Insurance
