Title page
Contents
Abstract 3
Acknowledgments 3
Summary 5
Introduction 7
Title I Support Programs 8
Commodity Programs 8
Agriculture Risk Coverage and Price Loss Coverage 8
PLC payment calculation 10
ARC-CO payment calculation 10
Calculation of Effective Reference Price 10
Marketing Assistance Loans 18
Livestock and Dairy Programs 20
Dairy Margin Coverage 20
Livestock Forage Disaster Program 25
Livestock Indemnity Program 27
Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish Program 28
Title XI Support Programs and Noninsured Crop Disaster Assistance Program 30
Traditional Policies 31
Endorsements and Special Provisions 34
Supplemental Policies and Endorsements 34
Conservation and Climate Smart Production Practice Incentives 38
Prevented Planting 39
The Pasture, Rangeland, and Forage Insurance Plan (PRF) 40
Noninsured Crop Disaster Assistance Program 41
Conclusion 44
References 45
Table 1. Summary of risk management programs 8
Table 2. Schedule of premiums for the Dairy Margin Coverage program (U.S. dollars per cwt) 22
Table 3. Dairy Margin Coverage enrollment and payments, 2019-22 23
Table 4. Title XI supplemental policies 35
Figure 1. Enrolled base acres in ARC and PLC, 2014-22 11
Figure 2. Actual county yields as a share of benchmark county yields, 2014-21 12
Figure 3. Marketing year average prices versus reference prices, 2014-21 13
Figure 4. ARC and PLC payments per enrolled base acre 14
Figure 5. Enrolled base acres in ARC and PLC by commodity, 2018-22 15
Figure 6. Total ARC-CO and PLC payments by commodity, 2014-20 16
Figure 7. National loan rate compared with marketing year average (MYA) prices, 2014/15-2021/22 19
Figure 8. U.S. all-milk price, as a sum of Dairy Margin Coverage (DMC) feed cost and milk margin, January 2019-December 2022 24
Figure 9. Dairy Margin Coverage national average feed cost estimate per 100 pounds of milk, January 2019-December 2022 24
Figure 10. Livestock Forage Disaster Assistance Program payments and prevailing drought conditions, 2014-21 26
Figure 11. Livestock Indemnity Program payments 28
Figure 12. ELAP payments, 2012-21 29
Figure 13. U.S. Federal Crop Insurance Program net reported acres by commodity type, 2014-21 30
Figure 14. U.S. Federal Crop Insurance Program liability by policy type, 2014-21 32
Figure 15. Endorsed acres under supplemental policies and endorsements, 2015-21 37
Figure 16. Prevented-planting indemnities, 2014-21 40
Figure 17. Noninsured Crop Disaster Assistance Program payments, 2011-21 42
Figure 18. Number of NAP applications per year, 2011-22 43