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GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2007

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Government costs for crop insurance have increased substantially in recent years. After ranging between $2.1 and $3.6 billion during FY2000-FY2006, costs rose to $7.3 billion in FY2009 as higher policy premiums from rising crop prices drove up premium subsidies to farmers and expense reimbursements (which are based on total premiums) to private insurance companies. In FY2010, total costs declined to $3.7 billion following a decline in crop prices. Reimbursements and risk-sharing between USDA and private insurance companies are spelled out in a Standard Reinsurance Agreement (SRA), which plays a large role in determining program costs. In 2010, USDA renegotiated the.

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GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2007

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