Proposals have been made to limit the amount of Federally-paid crop insurance premiums on a per farm basis. A $40,000 limit was proposed in the last farm bill and the 2016 Trump budget included this limit as well.
The sizes of corn and soybean farms that reach a $40,000 limit are examined for two counties in Illinois: a low risk county (McLean County) and a higher risk county (Saline County). For the low risk county, the farm size impacted by the limit is near 1,000 acres, a farm size that is relatively small by commercial grain farm standards. The 3,000 and 1,000 acre benchmarks assume 100% of share in crop production on farmland. use of share rent agreement increases proportionally the acres necessary to reach the limit.
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Observations from the analysis:
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Schnitkey, G., J. Coppess, N. Paulson, and C. Zulauf. “Farm Sizes Impacted by a $40,000 Crop Insurance Premium Support Limit.” farmdoc daily (8):19, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, February 6, 2018.