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The Federal Crop Insurance Program (FCIP) insures participating farmers against adverse production or market conditions. Under the FCIP, the Federal Government pays a portion of farmers’ premiums; these premium subsidies represent the costs to the Government of the FCIP. The cost of administering the FCIP rises in years with adverse weather events, such as droughts, when insurance claims outpace premiums paid for insurance coverage. Recent ERS research used statistical, geophysical, and economic models to explore how climate change could affect yields and the cost of the FCIP.


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