Hurricanes Push Crop Insurance Costs Higher in Mid-South

Aug 18, 2025
By Farms.com

Farmers in Arkansas Louisiana and Mississippi face higher insurance

Farmers in Arkansas, Louisiana, and Mississippi pay much higher crop insurance premiums compared to those in the Midwest. Research from the University of Arkansas System Division of Agriculture shows that hurricane risks are a major factor in driving these costs.

“I began to study the price of insurance crop insurance across the United States, and what I noticed was, there were vast differences in prices between what folks in the South and primarily the Mid-South would pay versus those in the upper Midwest. One thing that I begin to think about and do some research on is what's different about the Mid-South?” said economist Hunter Biram.

Premium rates reflect these risks. For example, insurance in the Midwest may cost two cents per dollar of liability, while Mid-South farmers may pay fifteen or sixteen cents. Crops like cotton and soybeans are especially vulnerable during hurricane season. Research found hurricane impacts account for up to 92 percent of cotton premium rates and 42 percent for soybeans. Corn and rice face lower but still notable risks.

Farmers in some counties are not eligible for the USDA’s Hurricane Insurance Protection program, leaving them exposed to losses. Producers like rice farmer Drew Flowers note that even small tropical storms can damage crops and reduce harvest efficiency, leading to costly delays and machinery wear.

The study suggests that while hurricane damage decreases further inland, risks remain significant in northeast Arkansas, sometimes even greater than in Louisiana. “I think the next step would be to visit with the Risk Management Agency and other policy makers to find a way to help farmers in northeast Arkansas manage hurricane risk. I know it sounds interesting to think that we need to manage hurricane risk in northeast Arkansas,” said Biram.

This research highlights the need for improved support and programs to help farmers facing natural disasters. Crop insurance remains an essential tool, but challenges persist in ensuring fairness across regions.

Photo Credit: istock-urpspoteko

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