UNITED STATES DEPARTMENT OF AGRICULTURE 
BULLETIN No. 912 AA 
Contribution from the Office of Farm Management *Tfiffi\P<il^]ar 
and Farm Economics •3si*S > i<!flft^5 
and Farm Economics 
H. C. TAYLOR, Chief 
Washington, D. C. 
November 17, 1920 
HAIL INSURANCE ON FARM CROPS IN THE 
UNITED STATES. 
By Y. N. Valgren, 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: (I) 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. 
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