Coverage Level Changes

RMA compared coverage level usage in 2002 against 1998. Data include both crop-yield plans (e.g. APH) and crop-revenue plans (e.g. CRC and RA). The top five crops grown nationally (corn, cotton, sorghum, soybeans, and wheat) are examined in each state in which they are grown.

In 1998, the two most frequently chosen coverage levels were 65 percent and the catastrophic (or CAT) level. CAT is provided for at an administrative fee (no premium), only provides 50-percent coverage, and pays indemnities at 55 cents on the dollar.

The Agricultural Risk Protection Act (ARPA), enacted in June 2000, provided increased premium subsidies, especially at the higher coverage levels. As a result, in 2002, the percentage of insureds buying CAT at the 65-percent level has generally decreased, and the percentage of use at the 70-, 75-, 80-, and 85-percent levels has generally increased. (The 80- and 85-percent levels are not available everywhere.)

The old and new premium subsidy rates are:

Level	CAT	50%	55%	60%	65%	70%	75%	80%	85%
Old Subsidy Rate	100%	55%	46%	38%	42%	32%	24%	17%	13%
New Subsidy Rate	100%	67%	64%	64%	59%	59%	55%	48%	38%

Select a State or Crop

States

Crops

Corn: Coverage Level Usage, 1998-2002  |  2003 Corn Policies
Cotton: Coverage Level Usage, 1998-2002  |  2003 Cotton Policies
Grain Sorghum: Coverage Level Usage, 1998-2002  |  2003 Grain Sorghum Policies
Soybeans: Coverage Level Usage, 1998-2002  |  2003 Soybeans Policies
Wheat: Coverage Level Usage, 1998-2002  |  2003 Wheat Policies

Also see: Current Drought Map

For more information on our policies or the crop insurance program, visit the following pages: Crop Policies, Pilots, "A History of the Crop Insurance Program," and the Federal Crop Insurance Act.

Last Modified: 03/06/2012