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The Risk Management Safety Net: Market Penetration and Potential
IV. Market Penetration of Federal Crop Insurance-All Insured Crops
Market penetration of Federal crop insurance is an important performance measure used to gauge the use and importance of the Federal crop insurance risk management safety net, to identify areas where market potential exists, and where the risk management safety net could be strengthened or expanded. Market penetration is measured by comparing the insured acres to the U.S. total acres (or other units, if acres are not applicable). Identification of market potential is helpful in the determination of future priorities for product development, maintenance, and improvements to the Federal crop insurance program making the most efficient and beneficial use of resources. This Portfolio Analysis, updated from the previous analysis with data through 2011, uses data through 2015 which is the latest year that U.S. data estimates are available for some commodities.
Nationwide Measures of Market Penetration
Market penetration totaled 86 percent of U.S. acres in 2015 for all commodities except hay, livestock, nursery, and pasture, range, and forage. This is up 3 percent from 2011, and up 13 percent compared to 2000. A little over 238.million acres were insured in 2015, up over 11 million acres from over 226 million in 2011, and up more than 37 million acres from 2000. The increase in market penetration occurred primarily for principal crops, fruits and nuts, and vegetable acres.
The year 2015 is the latest shown in this analysis of market penetration since U.S. total acres provided by NASS are not yet available for all 2016 crops. The following table shows market penetration by crop category and in total for 1990 through 2015:
Crop Values and Market Penetration by Acres (excludes livestock/nursery/pasture-range-forage)
Crop Category |
Item |
1990 |
2000 |
2011 |
2014 |
2015 |
Total (excluding hay/
livestock/nursery/PRF) |
NASS Acres* |
264,272,480 |
276,422,210 |
272,519,142 |
280,937,318 |
276,490,732 |
RMA Acres** |
95,846,727 |
201,036,666 |
226,689,318 |
233,668,715 |
238,235,611 |
Market Penetration |
36% |
73% |
83% |
83% |
86% |
*NASS acres were adjusted upwards if RMA insured acres were higher. |
**Includes crops reported in NASS Crop Production publication |
***Principal crops are barley, corn, cotton (including ELS cotton), grain sorghum, peanuts, potatoes, rice, soybeans, tobacco, and wheat. |
Note: Hay was removed from the totals and is listed separately because acreages are so large that it obscures the amounts of the other field crops. |
Principle Crops*** |
NASS Acres* |
246,527,700 |
253,140,800 |
253,835,155 |
258,002,360 |
252,143,910 |
|
RMA Acres |
94,420,238 |
187,793,518 |
214,602,614 |
219,843,840 |
223,290,361 |
|
Market Penetration |
38% |
74% |
85% |
85% |
89% |
Other Field Crops
(except Hay) |
NASS Acres* |
11,421,300 |
15,454,200 |
11,799,727 |
15,882,869 |
17,309,927 |
|
RMA Acres** |
378,054 |
9,167,445 |
8,227,024 |
9,647,757 |
10,836,272 |
|
Market Penetration |
3% |
59% |
70% |
61% |
63% |
Fruits and Nuts |
NASS Acres |
3,501,570 |
4,100,300 |
4,037,690 |
4,285,999 |
4,285,075 |
|
RMA Acres |
607,297 |
3,002,739 |
2,938,322 |
3,184,154 |
3,159,933 |
|
Market Penetration |
17% |
73% |
73% |
74% |
74% |
Vegetables |
NASS Acres |
2,821,910 |
3,726,910 |
2,846,570 |
2,766,090 |
2,751,820 |
|
RMA Acres |
441,138 |
1,072,964 |
921,358 |
992,964 |
949,045 |
|
Market Penetration |
16% |
29% |
32% |
36% |
34% |
Contact Information
For more information, contact RMA Public Affairs.
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