They also suggest that higher coverages should receive higher subsidies and that stronger links are needed between crop insurance and income protection. Proponents claim that a world class agricultural insurance system would provide affordable coverages so that most farmers are covered for all significant losses and major disasters. At a minimum, proponents argue for continuation of higher premium subsidy levels initiated last year. Cost of production insurance, whole farm insurance, livestock and feed insurance, and crop fertilization insurance are among the innovative proposals. Extra funding for insurance has been included in this year's farm aid package.
Critics suggest that it is unreasonable and too costly to insure agriculture into profitability.
Other critics also raise concerns about the influence of agricultural insurance industry profit motives. You could still allow the private sector to continue to receive sales margins and distribute more benefits directly to farmers. Incentives to Save for Bad Times. The concept of matching funds for farmer savings accounts received a positive recommendation from conference participants. Crop insurance premiums represent a cost of production.