UNITED STATES DEPARTMENT OF AGRICULTURE 
BULLETIN No. 1043 
Contribution from the Office of Farm Management and ,£J 
Farm Economics 
G. W. FORSTER, Acting Chief 
&J S P' < &J'U 
Washington, D. C. 
January 23, 1922 
CROP INSURANCE: RISKS, LOSSES, AND PRINCI 
PLES OF PROTECTION. 
By V. N. Valgren, Associate Agricultural Economist. 
CONTENTS. 
The farmer's " independence " 
Meaning of " loss " or " damage " in 
connection with growing crops 
Quantitative importance of annual 
damage to farm crops 
Page. 
1 
Page. 
Elimination or reduction of risk . 13 
Self-insurance 13 
Insurance by contract 16 
Principles of crop insurance 18 
Summary 26 
THE FARMER'S "INDEPENDENCE." 
The farmer is frequently spoken of as the most independent mem- 
ber of organized society. Using the word ; ' independent " in its 
social significance, this characterization is essentially true. Cer- 
tainly the land-owning farmer is less directly dependent than those 
who follow commercial or professional pursuits upon the good will 
of his fellow-men and under less obligation to cater to their whims 
or prejudices. But though the farmer enjoys a comparatively high 
degree of independence in his social and business relations, his 
economic status, to an unusual degree, is directly dependent upon 
nature. 
The factory, the mill, the store, or the business of the professional 
man may continue, for a time at least, but little disturbed b}^ adverse 
weather conditions or other natural agencies that endanger farm 
crops. Only when these conditions or agencies cause the failure 
of crops over wide areas are commercial and professional men 
affected severely. Assuming, however, that the farmer brings to 
his work reasonable effort and good judgment, favorable action of 
natural forces and agencies means a large harvest, while adverse 
action by one or more of them may nullify his best efforts. Exces- 
sive heat or rain may ruin his planted fields, his gardens, or his 
orchards, as may also the lack of heat or the coming of drought. 
78632—22 1 
