Regional Differences in Crop Insurance Base Rates

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Base county rates reflect the starting point for crop insurance rates for an insured crop in a particular county.  A particular insured unit’s rate will be derived by adjusting the base county rate to reflect yield versus revenue coverage, coverage level, unit structure, and unit APH relative to base county yield.  Differences in base county rates reflect differences in yield risk derived from historical crop insurance losses.  Figures 1-4 reflect the 2016 base rates for corn, cotton, rice, and soybeans.  A lower base rate reflects a less risky region.  Often large contiguous areas have similar risk levels.  Also, a low yield risk crop such as rice has generally lower rates than other crops.

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Figure 4.