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Crop insurance for small farmers
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LHaag
Posted 3/12/2019 17:18 (#7376036 - in reply to #7373054)
Subject: RE: Crop insurance for small farmers



Colby, Kansas
Thanks for that clarification. I wasn't thinking about EU, more along the lines of OU.

I would say there is sound actuarial theory behind that discount as it's less likely to pay out.

Sometimes (in general, not specific to your post), people forget that by law the crop insurance program has to be actuarially sound over the long-term, i.e. indemnities = premiums which as we all know in this case premiums = producer premium + govt. subsidy.

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