UNITED STATES DEPARTMENT OF AGRICULTURE 



Contribution from the Office of Farm Management 

 and Farm Economics 



H. C. TAYLOR, Chief 



Washington, D. C. 



November 17, 1920 



HAIL INSURANCE ON FARM CROPS IN THE 



UNITED STATES. 



By V. N. Vaxgren, Associate Agricultural Economist. 



CONTENTS. 



Page. 



Introduction : 1 



Origin and development 2 



Territorial distribution _^ 11 



Cost of hail insurance 16 



Characteristics of the hail insurance 



contract 



Special problems in hail insurance 



Page. 



20 



24 



INTRODUCTION. 



The business of farming involves numerous risks. These risks may 

 be minimized, if not wholly removed, by the application of principles 

 of insurance. The insurance method of dealing with risks and losses 

 is widely current among men in commercial pursuits. To the latter, 

 insurance is now available, and very generally procured, against 

 nearly every form of loss to which their business is subject. 



The most common source of loss to the farmer is the partial or 

 total failure of his crops. Hitherto, with negligible exceptions, the 

 only form of crop insurance available has been that against loss by 

 hail, and even this limited insurance coverage is of relatively recent 

 origin. In the last few years, however, hail insurance has attained 

 a quantitative importance that only those in close touch with the 

 business have been in position to realize. 



Hail insurance on growing crops is written in the United States 

 by organizations representing three different groups of business insti- 

 tutions. These groups are: (1) Mutual hail insurance companies, 

 which, with few exceptions, limit their business to the insurance of 

 growing crops against hail; (2) joint-stock fire insurance companies, 

 which write hail insurance on growing crops more or less as a side 

 line: (3) State hail insurance boards or departments, under whose 

 direction and control are administered State hail insurance funds. 



7676°— 20 1 



