Crop Insurance

The Federal Crop Insurance Program (FCIP) is a key part of the federal farm safety net, shielding American farmers from losses due to drought, excess moisture, hail, wind, disease, and price changes. Launched in the 1930s and expanded since 1980, it now covers over 120 commodities through a public-private partnership, with private insurers delivering policies under USDA Risk Management Agency oversight. In 2024, 89% of major field crop acreage was insured, up from 37% in 1990.

How It Works

Farmers select coverage from catastrophic to revenue protection, with the government subsidizing premiums to make it affordable. Policies require good farming practices for eligibility. Explore crop insurance basics, including options for yield, revenue, and emerging risks like those in controlled environments.

Coverage Types

Beyond traditional yield protection, revenue policies now dominate over 90% of major crop acres like corn and soybeans. Add-ons such as Enhanced Coverage Option and Supplemental Coverage Option extend protection up to 95%, with boosted subsidies in 2025.

Recent Updates

2025 enhancements include higher subsidies for ECO and SCO, expanded Controlled Environment coverage to 85%, and ARC-CO improvements to 90% coverage, strengthening support amid volatile markets and weather risks.