The Risk Management Safety Net:
III. Market Penetration of Federal Crop Insurance-All Insured Crops
Federal crop insurance market penetration measures, calculated as insured acres compared to U.S. acres (or other applicable units if acres are not applicable), are used to measure the scope of the risk management safety net over time and to identify areas where market potential exists and the risk management safety net could be strengthened. Identification of market potential is helpful in the determination of future priorities for product development, maintenance, and improvements to Federal crop insurance, as well as assisting with determinations of the most efficient and beneficial use of resources.
Nationwide Measures of Market Penetration
Federal crop insurance nationwide market penetration increased to 83 percent in 2011, from 73 percent in 2000, and up from only 36 percent in 1990 (measured with acres and excluding hay, livestock, nursery, and pasture/range/forage). Acres covered by higher levels of coverage (Buy-Up) also increased overall to 92 percent in 2011from 78 percent in 2000. The year 2011 is the latest year shown because NASS numbers are not yet available for all crops for 2012. The following table shows market penetration by crop category and in total for 1990, 2000, and 2011:
For more information, contact John Shea.