Farm bureau insurance could be cheaper than farm bureau policies in some areas, but the cost could be far higher than farm-state policies under the Affordable Care Act, according to a report from the Center for Rural Economic Growth.
The Center for Research on Rural Economics (CRE) estimates that the cost of Farm Bureau insurance could range from $50 to $70 million per policy, depending on the state, and the cost would be shared among the farmer, the state agency, the farmer’s employer and the state’s health care provider.
The report said that many Farm Bureau policies, even with farm subsidies, cost about $150,000 a year in premiums.
The price of a Farm Bureau policy could be as low as $50,000, the CRE said.
A recent report by the American Farm Bureau Federation found that the price of Farm Bureaus policies could be significantly higher than Farm Bureau prices.
Farm Bureau insurance, the report found, is much more expensive than farm state insurance.
“Farm bureau insurance is a very expensive policy for the farmer to purchase,” said Michael T. Wigdor, senior policy analyst at the CRe.
“It’s the same price, but at a lower level of coverage.”
The report found that Farm Bureau insurers cover the cost for only a quarter of farm-based insurance and only a fifth of farm state insurers.
Wagdor added that it is a good idea for farmers to have insurance that covers farm, not just livestock.
“We want to make sure that there is enough coverage for livestock,” he said.
“Farmers who are making more money, and therefore, the policies are going to be more affordable for them.”
The farm bureau program, known as Farm Bill, was created by the Farm Bill and Farm Bureau Act of 2016, which took effect Jan. 1.
The Farm Bill provides subsidies to farmers, and Farm Bursary Program, also known as Bursal Aid, provides cash assistance for farmers.
Both programs were expanded under the Farm BUREA Act of 2018.
Farm bureau policies have been available since 2008, according the CRD.
The program was expanded in 2015 with new benefits, including $5 million to expand farm bureau programs in Alabama, Georgia, Kentucky, Missouri, South Carolina, Tennessee and West Virginia, as well as $20 million to extend coverage to more than 30 counties.
The benefits for 2018 were extended through 2021.
Under the Farm Bureau plan, subsidies to cover farm costs were capped at $50 per farm bureau, with a limit of $50.
The plan also offered a $5,000 cap for any coverage that would exceed that amount, as long as it is “not subject to any other state, federal, or local tax.”
The CRE analysis found that some of the new benefits could have been included in Farm Bureau, which could be a cheaper option if the price was lower.
But it said that, for example, a $50 premium could be more expensive for a farmer in a rural state than for a farm-in-state policy in a urban state.
According to the CROE, the new Farm Bureau subsidies could be particularly helpful for farmers who purchase insurance through their employers, since employers could provide tax credits for the premium, which would help offset the cost.
The farm-insurance market is still growing, and many policyholders are opting for Farm Bureau coverage, according an industry report from last year.
The study said that about one-third of Farm bureau coverage was available through Farm BURAS, a program created under the new farm bill.
About one-quarter of Farm bureaus coverage was purchased by employers, and about 40 percent of Farm bill coverage was for individuals.
“The farm industry continues to experience an unprecedented demand for Farm bureau,” the report said.