GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2007
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Government costs for crop insurance have increased substantially in recent years. After ranging
between $2.1 and $3.6 billion during FY2000-FY2006, costs rose to $7.3 billion in FY2009 as
higher policy premiums from rising crop prices drove up premium subsidies to farmers and
expense reimbursements (which are based on total premiums) to private insurance companies. In
FY2010, total costs declined to $3.7 billion following a decline in crop prices. Reimbursements
and risk-sharing between USDA and private insurance companies are spelled out in a Standard
Reinsurance Agreement (SRA), which plays a large role in determining program costs. In 2010,
USDA renegotiated the...
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GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2007
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GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2007
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