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Food insecurity, poverty, and risk affect people’s well-being around the world on a daily basis. This research looks specifically at agricultural producing households in rural Northwestern Ethiopia and how yield insurance and minimum income insurance would impact household welfare. The impacts of yield insurance and minimum income insurance is examined to determine the impact of alternative risk mitigation options on household welfare and program cost. Additionally, the viability of the insurance programs for the Ethiopian government is considered. It was found that an approach that focused on income protection rather that crop insurance was more cost effective in providing desired household wealth. This research has the potential to assist governments in developing countries in providing public sector insurance programs for subsistence agricultural households.