TABLE 5. Data for 75 sample farms in Frederick County, Md., showing under the 75-percent plan1 the insurance coverage for each farm in bushels of wheat per acre, the annual premium for each farm in bushels per acre,2 the percentage for each farm that the premium would be of the coverage, the total amount of premium for all seeded acres on each farm for each year under the annual premium plan and also under the payment out of surplus plan 3 -Continued Premium for all seeded acres under plan to require payment of 25 percent of production in excess of average expectation All years 1930 1931 1932 1933 1934 1935 All years 1939 1931 1932 1933 1934 1935 1 Under the 75-percent plan the coverage would be 75 percent of the average yield on the insured farm. 2 The premium as shown here would be an average of the loss experience for the insured farm and the loss experience for all sample farms in the county. 3 Under this plan, if it could be satisfactorily worked out, the farmer would pay a premium only in years when his yield exceeded his average yield. For Frederick County 25 percent of the excess in years of production above the average would be sufficient to cover losses in all years. No wheat planted. FIGURE 6.-Premiums, expressed in percentage of insurance coverage, that would be necessary to cover wheat crop losses on 75 sample farms in Frederick County, Md. Based on data in table 5 for premiums that would be necessary to insure yields up to 75 percent of the average yield on the insured farm. The premium is the average of the crop loss experience of the individual farm and the crop loss experience of the county. It covers only the cost of meeting crop losses with no loading for administrative costs. TABLE 6.-Tentative county figures for the average annual loss per acre (in bushels) to insure the wheat crop up to specified percentages of the average yield on the insured farm [County figures are based on data from sample individual farms for the years 1930-35 and are subject to adjustment] |