Feng, Hongli; Du, Xiaodong; Hennessy, David A. - Agricultural and Applied Economics Association - AAEA - 2013
The U.S. crop insurance has two distinct features that set itself apart from insurance in other areas: (i) it is explicitly subsidized with an average premium subsidy rate of about 60 percent in recent years; and (ii) the law requires the premium rate be set at actuarially fair level with the...