9. Insurance Cooperative

Farmers Insurance

Farmers should be able to buy however much insurance they feel they need in order to protect themselves against very low market prices. Farmers could choose the amount of insurance they want by determining at what minimum price they are willing to sell the commodity they produce. The lower the price the farmer chooses, the lower the premiums paid on the insurance, and vice versa. When the market price of the commodity falls below the stated insurance policy guaranteed price, the insurance policy would pay the farmer the difference between the two prices. This same principle could be applied to many other industries.

Other Industries Could Do the Same

Other industries like oil producers, nuclear power generators, mining companies, etc., could also create their own insurance system in which every covered participant pays into a fund proportionally according to their participation rate in the market (or other agreed statistic). This way, the cost of accidents which would easily bankrupt a company would be spread out among all the participant in that industry.  The logic for this is that taxpayers should never have to bail out any company due to an accident, like the BP Gulf blowout on 2010. The largest nest of people held accountable should be the industry. The government should pay out only in very extreme examples and only if it can be shown that they have been at least partly at fault.

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