Insurance Commons^™

Where Is Your Crop Insurance Agent? Understanding The Geographical Distribution Of Agents, Cory Walters, Nathan Delay

Cornhusker Economics

Following the modifications to the Standard Reinsurance Agreement (SRA) in 2010, there was limited understanding of the impact of policy changes on agent availability. Our objective is to construct a model of the equilibrium supply of crop insurance agents and to test hypotheses regarding the factors influencing agent concentration, such as commissions, competition, and risk. We developed a theoretical equilibrium model of the federal crop insurance market, which encompasses three tiers: insurance companies, agents, and farmers. The model incorporates key features of the federal program, including government-set premiums and the stipulation that agents cannot refuse coverage or modify premiums for …

Annual Forage Insurance Program Performance, Jay Parsons

Cornhusker Economics

In 2014, the Annual Forage Insurance Program (AFIP) was offered for the first time by the USDA – Risk Management Agency (RMA) as a pilot program for the states of Nebraska, North Dakota, South Dakota, Kansas, Oklahoma, and Texas. It was expanded to include Colorado in 2016 and New Mexico in 2017. This year marks the 10-year anniversary of the program, and the goal of this article is to provide a summary of where the program is and how it is being used. We will focus specific attention on Nebraska but also provide an overview of the national picture.

The …

Insurance, Policy, And Education For Livestock Producers, Milan Chauhan, Bradley D. Lubben

Cornhusker Economics

Federal crop insurance programs have existed since the 1930s, but for livestock producers, federal insurance programs were virtually nonexistent until the past 20 years. Livestock producers may not face exactly the same production risks that crop producers face, but they do face similar production risks related to grazing capacity and forage production and of course face price risks just like crop producers do.

North Central Extension Risk Management Education Center Helps Producers Manage Risks, Christine Lockert, Sheila Aikanathan Johnson, Bradley D. Lubben

Cornhusker Economics

The Extension Risk Management Education (ERME) program, funded by USDA's National Institute of Food and Agriculture, provides training to help producers learn new strategies to manage complex and growing agricultural risks. ERME strives to achieve this goal by encouraging and funding innovative programs across the country and helping programs focus on tangible results. Four regional grant-making ERME Centers are located across the country at the University of Delaware (Northeast), the University of Arkansas (South), Washington State University (West) and the University of Nebraska-Lincoln (North Central) along with a Digital Center at the University of Minnesota to help administer online application, …

Use Of Livestock Risk Protection Insurance For Cattle Continues To Grow, Jay Parsons

Cornhusker Economics

When used as a regular part of a market risk management plan, livestock risk protection (LRP) insurance can help protect profits in years where markets turn for the worse. The recent changes to the program have made LRP insurance more appealing to cattle producers and sales of LRP have subsequently increased dramatically. Strong price increases may make LRP unnecessary, but it is difficult to predict when the price increases will end. LRP insurance is a safety net, reducing downside price risk by providing a floor on national price expectations while also allowing producers to take advantage of higher national prices …

A Commonly Forgotten Tool In Retirement Planning: Health Savings Accounts, Austin Duerfeldt

Cornhusker Economics

Many individuals are aware of IRAs, 401(k) plans, 403(b) plans, and others when starting to build their retirement portfolio. These plans all have their benefits and drawbacks that need to be accounted for. What surprises many is there is another tool that you may be qualified for and are underutilizing. A Health Savings Accounts commonly referred to as an HSA, has some interesting possibilities that could be useful. An HSA is a type of savings account that lets you set aside money on a pre-tax basis to pay for qualifying medical expenses. While you cannot generally use this money saved …