REPORT OF THE SECRETARY OF AGRICULTURE. 37 



FARMERS' MUTUAL. INSURANCES. 



The department has aided and encouraged further improvement 

 in the methods of operating the farmers' mutual insurance compasiies 

 in all parts of the country and has brought about the extension of 

 this sound and economical form of insurance protection to those of 

 the Southern States where as yet little development of this kind has 

 taken place. In many of the States of the South fire-insurance rates 

 as quoted by commercial companies are so high as to make the cost 

 of protection to a considerable percentage of the farmers well-nigh 

 prohibitive. Experience has demonstrated that through local co- 

 operation expenses can be materially reduced and the loss ratio can 

 be greatly lowered by the elimination of all moral hazards, as well 

 as the elimination of some of the physical hazards involved. 



CROP INSURANCE. 



Special interest has been evident recently in the problem of insur- 

 ance on growing crops. Several of the larger joint-stock fire-insur- 

 ance companies have in recent years been experimenting with a 

 broader form of insurance coverage for crops than that involved in 

 so-called hail insurance, which has been extensively written for a 

 number of years. The department has been glad to cooperate with 

 the Senate committee appointed to investigate the subject of crop 

 insurance in the United States and to contribute to the statistical and 

 other data sought by this committee. The growing of crops is sur- 

 rounded by a wide variety of hazards. The uncertainty of weather 

 conditions, plant diseases, insect and animal pests give rise to a risk 

 against which it would be highly desirable for the farmer to be in 

 position to protect himself. In commerce and industry insurance 

 protection against hazards over which the individual has no control 

 is now very generally available. It seems reasonable and proper 

 that the producer of crops should also be in position to safeguard 

 himself against total or serious loss of his annual investment of 

 capital and labor after doing everything possible on his own part to 

 bring about a harvest. 



AGRICULTURAL. COOPERATION. 



During the past three years farmers in the United States have 

 turned to cooperation for the solution of their marketing difficulties 

 in ever-increasing numbers. In a period of rapid expansion it is 



