Premium subsidy rates were raised under the Agricultural Risk Protection Act of 2000, so that most farmers pay around 40 to 50 percent of the premiums. Insurance is widely available, though coverage is not available for all crops in all areas, and all types of insurance are not available for all crops.
Farmers sign up for insurance prior to planting, but usually pay premiums after harvest.
Several types of crop yield and revenue insurance are available. Each has some unique features. It protects farmers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects, and disease. The total indemnity equals this yield shortfall times the indemnity price times acres insured. It pays indemnities at a rate of 55 percent of the established price of the commodity when farm yield losses are more than 50 percent.