Data/hora: 14/06/2024 05:33:43

Provedor de dados: | Research in Agricultural & Applied Economics (AgEcon Searh)
País: | United States
Título: | Land Use Consequences of Crop Insurance Subsidies
Autores: | Miao,   Ruiqing; Feng,   Hongli; Hennessy,   David A.
Data: | 2011-05-04
Ano: | 2011
Palavras-chave: | Crop insurance; Land use; Crop yields; Yield risk measurement; Agricultural and Food Policy; Crop Production/Industries; Land Economics/Use; Q15; Q18; Q24.
Resumo: | There have long been concerns that federal crop insurance subsidies may significantly impact land use decisions. It is well known that classical insurance market information asymmetry problems can lead to a social excess of risky land entering crop production. Our conceptual model shows that the problem will arise absent any information failures. This is because the subsidy is i) proportional to acres planted, and ii) greatest for the most production risky land. Using farm-level data, we follow this observation through to establish the implications of subsidies for the extent of crop production, with particular emphasis on U.S. regions where the cropland growth is likely to have marked adverse environmental impacts. Simulation results show that when subsidy rate decreases by 5 percentage points, then about 0.60 percent of insured cropped land will be converted to non-cropped land.  When crop price decreases by 5 percent, then about 1.01 percent of insured cropped land will be converted to non-cropped land.
Tipo: | Working or Discussion Paper
Idioma: | Inglês
Identificador: | http://purl.umn.edu/103891

Relação:

Agricultural and Applied Economics Association&gt;2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania

Selected Paper

12969

Formato: | 52