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Definition for

Continuous Coverage

Refers to the ability of farmers to select any level of crop insurance coverage between 50% and 85% of normal crop yield. Current crop insurance law prohibits continuous coverage. Instead, it requires a participating farmer to choose a coverage level in 5% increments to match the premium subsidy structure, which is set in law in 5% increments. The percentage of the crop insurance premium subsidized by the federal government falls as a producer selects higher levels of coverage. Hence, the continuous coverage prohibition is a federal cost-saving measure that prevents producers who would normally choose, for example, a 65% level of coverage, from dropping back to 64% coverage just to receive the higher subsidy level.

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