The sector-level safety net provided by the current mix of farm programs

Current farm policy includes a diverse set of programs intended to provide a financial safety net for producers of grains, oilseeds, and cotton. These programs make payments contingent on national market prices and yields at the farm or county level. A review of data for the 2014-2020 period demonstrates the successes and limitations of crop insurance, agriculture risk coverage and price loss coverage at offsetting reductions in national net market revenues for particular crops. Forward-looking stochastic analysis confirms these programs protect against different types of risks but provide support levels that can vary greatly across commodities and time.