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Registros recuperados: 147
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Influence of the Premium Subsidy on Farmers' Crop Insurance Coverage Decisions AgEcon
Babcock, Bruce A.; Hart, Chad E..
The Agricultural Risk Protection Act greatly increased the expected marginal net benefit of farmers buying high-coverage crop insurance policies by coupling premium subsidies to coverage level. This policy change, combined with cross-sectional variations in expected marginal net benefits of high-coverage policies, is used to estimate the role that premium subsidies play in farmers' crop insurance decisions. We use county data for corn, soybeans, and wheat to estimate regression equations that are then used to obtain insight into two policy scenarios. We first estimate that eventual adoption of actuarially fair incremental premiums, combined with current coupled subsidies, would increase farmers' purchase of high-coverage policies by almost 400 percent...
Tipo: Working or Discussion Paper Palavras-chave: Agricultural Risk Protection Act; Crop insurance; Premium subsidies; Risk and Uncertainty.
Ano: 2005 URL: http://purl.umn.edu/18494
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FAPRI 2001 U.S. and World Agricultural Outlook AgEcon
Babcock, Bruce A.; Beghin, John C.; Fuller, Frank H.; Mohanty, Samarendu; Fabiosa, Jacinto F.; Kaus, Phillip J.; Fang, Cheng; Hart, Chad E.; Matthey, Holger; de Cara, Stephane; Kovarik, Karen; Womack, Abner W.; Young, Robert E., II; Westhoff, Patrick C.; Trujillo, Joe; Brown, D. Scott; Adams, Gary M.; Willott, Brian; Madison, Daniel; Meyer, Seth D.; Kruse, John R..
Tipo: Report Palavras-chave: Crop Production/Industries; Livestock Production/Industries.
Ano: 2001 URL: http://purl.umn.edu/32052
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Estimating Non-linear Weather Impacts on Corn Yield—A Bayesian Approach AgEcon
Yu, Tian; Babcock, Bruce A..
We estimate impacts of rainfall and temperature on corn yields by fitting a linear spline model with endogenous thresholds. Using Gibbs sampling and the Metropolis - Hastings algorithm, we simultaneously estimate the thresholds and other model parameters. A hierarchical structure is applied to capture county-specific factors determining corn yields. Results indicate that impacts of both rainfall and temperature are nonlinear and asymmetric in most states. Yield is concave in both weather variables. Corn yield decreases significantly when temperature increases beyond a certain threshold, and when the amount of rainfall decreases below a certain threshold. Flooding is another source of yield loss in some states. A moderate amount of heat is beneficial to...
Tipo: Working or Discussion Paper Palavras-chave: Bayesian estimation; Gibbs sampler; Hierarchical structure; Metropolis-Hastings algorithm; Non-linear; Crop Production/Industries; Production Economics; Risk and Uncertainty.
Ano: 2011 URL: http://purl.umn.edu/103915
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Are U.S. Corn and Soybeans Becoming More Drought Tolerant? AgEcon
Yu, Tian; Babcock, Bruce A..
An objective drought index that measures the dry and hot conditions adversely affecting crop yields is used in a regression analysis to test whether corn and soybeans have become more drought tolerant. Results indicate that corn yield losses, whether measured in quantity terms or as a percentage of mean yield, have decreased. The null hypothesis that the absolute level of soybean yield losses due to drought has not changed cannot be rejected. But yield losses in percentage terms have decreased over time. Because drought is the primary cause of yield loss in the U.S. crop insurance program and because U.S. crop insurance rates assume that percentage of yield losses are constant over time, these results indicate that U.S. crop insurance rates in the Corn...
Tipo: Working or Discussion Paper Palavras-chave: Corn; Crop insurance rates; Drought tolerance; Soybean; Yield risk; Crop Production/Industries; Productivity Analysis; Risk and Uncertainty.
Ano: 2009 URL: http://purl.umn.edu/54147
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Impact of a 10 Percent Decrease in Planted Acreage of All U.S. Program Crops AgEcon
Adams, Gary M.; Babcock, Bruce A.; Young, Robert E., II; Beghin, John C.; Westhoff, Patrick C.; Fuller, Frank H.; Brown, D. Scott; Fabiosa, Jacinto F.; Willott, Brian; Fang, Cheng; Madison, Daniel; Hart, Chad E.; Meyer, Seth D.; Matthey, Holger; Kruse, John R.; de Cara, Stephane.
Tipo: Working or Discussion Paper Palavras-chave: Crop Production/Industries.
Ano: 2001 URL: http://purl.umn.edu/18292
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Get a Grip: Should Area Revenue Coverage Be Offered Through the Farm Bill or as a Crop Insurance Program? AgEcon
Paulson, Nicholas D.; Babcock, Bruce A..
The successful expansion of the U.S crop insurance program has not eliminated ad hoc disaster assistance. An alternative currently being explored by Congress in preparation of the 2008 farm bill is a standing disaster relief program. One form such a program could take can be found in the area insurance programs currently offered by the U.S crop insurance program. Total per acre taxpayer costs of offering Group Risk Income Protection (GRIP) in Indiana, Illinois, and Iowa for corn and soybeans are estimated to have the ability to fund a country target revenue program at the 93% coverage level.
Tipo: Journal Article Palavras-chave: Area insurance; Commodity programs; Crop insurance; Farm bill; Group Risk Income Protection; Agricultural and Food Policy; Agricultural Finance.
Ano: 2008 URL: http://purl.umn.edu/42458
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An Economic and Environmental Evaluation of Farm Bill Policy Options Using the CEEPES-FAPRI Modeling System AgEcon
Lakshminarayan, P.G.; Babcock, Bruce A..
Tipo: Working or Discussion Paper Palavras-chave: Agricultural and Food Policy.
Ano: 1995 URL: http://purl.umn.edu/18489
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Environmental and Distributional Impacts of Conservation Targeting Strategies AgEcon
Wu, JunJie; Zilberman, David; Babcock, Bruce A..
Resource purchasing funds have become a major tool for environmental protection and resource conservation. These funds use various strategies to target resources for environmental conservation, the choice of which may lead to striking differences in environmental performance. This paper develops an analytical framework to compare the effects of alternative targeting strategies on consumer surplus, producer surplus, and environmental benefits. We demonstrate that ignoring the output price effect of purchasing funds reduces environmental gain from the purchasing fund and, in some cases, may make a purchasing fund counterproductive. A purchasing strategy that targets resources with the highest environmental benefits may be counterproductive even if the price...
Tipo: Working or Discussion Paper Palavras-chave: Conservation funds; Distributional effects; Environmental benefits; Targeting strategies; Environmental Economics and Policy; D1; D2.
Ano: 1999 URL: http://purl.umn.edu/18528
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Conservation Payments: Challenges in Design and Implementation AgEcon
Babcock, Bruce A.; Beghin, John C.; Duffy, Michael D.; Feng, Hongli; Hueth, Brent; Kling, Catherine L.; Kurkalova, Lyubov A.; Schneider, Uwe A.; Secchi, Silvia; Weninger, Quinn; Zhao, Jinhua.
As Congress develops new farm legislation, some are lobbying for a new partnership between U.S. taxpayers and farmers. In exchange for an annual transfer of $10 to $20 billion from taxpayers to agriculture, farmers would do much more to enhance environmental quality. An attractive feature of a new partnership is that paying for an improved environment provides a clear and justifiable rationale for farm program payments, something that is lacking under current farm programs. By changing management practices and land use, farmers can provide cleaner water, cleaner air, better wildlife habitat, lower net greenhouse gas emissions, and improved long-run soil quality. Private profit maximizers largely ignore the value of these environmental goods. Hence, the...
Tipo: Working or Discussion Paper Palavras-chave: Land Economics/Use; Resource /Energy Economics and Policy.
Ano: 2001 URL: http://purl.umn.edu/36920
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Optimal Sampling Under a Geostatistical Model AgEcon
Pautsch, Gregory R.; Babcock, Bruce A.; Breidt, F. Jay.
Tipo: Working or Discussion Paper Palavras-chave: Research Methods/ Statistical Methods.
Ano: 1998 URL: http://purl.umn.edu/18424
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Biofuels: Potential Production Capacity, Effects on Grain and Livestock Sectors, and Implications for Food Prices and Consumers AgEcon
Hayes, Dermot J.; Babcock, Bruce A.; Fabiosa, Jacinto F.; Tokgoz, Simla; Elobeid, Amani E.; Yu, Tun-Hsiang (Edward); Dong, Fengxia; Hart, Chad E.; Chavez, Eddie C.; Pan, Suwen; Carriquiry, Miguel A.; Dumortier, Jerome.
We examined four evolution paths of the biofuel sector using a partial equilibrium world agricultural sector model in CARD that includes the new RFS in the 2007 EISA, a two-way relationship between fossil energy and biofuel markets, and a new trend toward corn oil extraction in ethanol plants. At one extreme, one scenario eliminates all support to the biofuel sector when the energy price is low, while the other extreme assumes no distribution bottleneck in ethanol demand growth when the energy price is high. The third scenario considers a pure market force driving ethanol demand growth because of the high energy price, while the last is a policy-induced shock with removal of the biofuel tax credit when the energy price is high. Standard results hold where...
Tipo: Journal Article Palavras-chave: Biofuel; EISA; Ethanol; Tax credit; World agricultural sector model; Agribusiness; Consumer/Household Economics; Crop Production/Industries; Demand and Price Analysis; International Relations/Trade; Livestock Production/Industries; Political Economy; Production Economics; Resource /Energy Economics and Policy; Q13; Q18; Q38.
Ano: 2009 URL: http://purl.umn.edu/53093
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Impact of RFS Rules on Rural America: Will demand for CO2 offsets grow? (PowerPoint) AgEcon
Babcock, Bruce A..
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy.
Ano: 2009 URL: http://purl.umn.edu/51578
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CAN SPOT AND CONTRACT MARKETS CO-EXIST IN AGRICULTURE? AgEcon
Carriquiry, Miguel A.; Babcock, Bruce A..
New production technologies, consumers who are more discriminating, and the need for improved coordination are among the forces driving the move from spot markets to contracts. Some worry that this tendency will result in the disappearance of spot markets, or at least that they will become too thin to be of help for an efficient price discovery process. Other authors point to the reduction in welfare of independent producers resulting from contracting in oligopsonistic industries. While a large body of literature is available tackling the contract versus spot market decision, much less is known about the reasons that lead to procurement in both markets. This paper provides a simple model to study how fundamental economic factors influence the contracting...
Tipo: Working or Discussion Paper Palavras-chave: Contract markets; Contracting in agriculture; Specialty grains; Spot markets; Yield risk; Marketing.
Ano: 2004 URL: http://purl.umn.edu/18634
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The Budgetary and Producer Welfare Effects of Revenue Insurance AgEcon
Hennessy, David A.; Babcock, Bruce A.; Hayes, Dermot J..
The efficiency of redistribution of a government provided revenue insurance program is compared with the 1990 farm program. The results indicate the revenue insurance would be more efficient because it would provide subsidies when and only when revenue is low and marginal utility is high, and it works on the component of the objective function (revenue) that is of greatest relevance to producers. Simulation results indicate that a revenue insurance scheme that guarantees 75 percent of expected revenue to risk-averse producers could provide approximately the same level of benefits as the 1990 program, at as little as one-fourth the cost.
Tipo: Working or Discussion Paper Palavras-chave: Risk and Uncertainty.
Ano: 1997 URL: http://purl.umn.edu/18628
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GENETIC INFORMATION IN AGRICULTURAL PRODUCTIVITY AND PRODUCT DEVELOPMENT AgEcon
Hennessy, David A.; Miranowski, John A.; Babcock, Bruce A..
A prominent facet of recent changes in agriculture has been the advent of precision breeding techniques. Another has been an increase in the level of information inputs and outputs associated with agricultural production. This paper identifies ways in which these features may complement in expanding the variety of processed products, the level of productivity, and the rate of change in productivity. Using a martingale concept of "more information," we identify conditions under which more information increases the incentives to invest and engage in product differentiation. A theory on how genetic uniformity can enhance the rate of learning through process experimentation, and so the rate of technical change, is also developed.
Tipo: Working or Discussion Paper Palavras-chave: Experimentation; Genetics; Information; Martingale; Sorting; Uniformity; Value added; Productivity Analysis.
Ano: 2003 URL: http://purl.umn.edu/18598
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Farm-Level Analysis of Risk Management Proposals AgEcon
Babcock, Bruce A.; Hart, Chad E.; Adams, Gary M.; Westhoff, Patrick C..
This paper presents a detailed report of the representative farm analysis (summarized in FAPRI Policy Working Paper #01-00). At the request of several members of the Committee on Agriculture, Nutrition, and Forestry of the U.S. Senate, we have continued to analyze the impacts of the Farmers' Risk Management Act of 1999 (S. 1666) and the Risk Management for the 21st Century Act (S. 1580). Earlier analysis reported in FAPRI Policy Working Paper #04-99 concentrated on the aggregate net farm income and government outlay impacts. The representative farm analysis is conducted for several types of farms, including both irrigated and non-irrigated cotton farms in Tom Green County, Texas; dryland wheat farms in Morton County, North Dakota and Sumner County, Kansas;...
Tipo: Working or Discussion Paper Palavras-chave: Crop insurance; Farm analysis; Representative farm analysis; Revenue; Risk and Uncertainty.
Ano: 2000 URL: http://purl.umn.edu/18389
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Weather Effects on Trend, Variance and Distribution of Crop Yield AgEcon
Yu, Tian; Babcock, Bruce A..
Favorable weather conditions for dryland crop production, including a proper amount of heat and rainfall during the growing season, are critical factors determining yield outcomes. Weather conditions however, are randomly distributed across regions and over time, thus influencing the temporal and geographical patterns of measured crop yield. Failure to account for weather factors when estimating crop yield distributions, time trends or productivity gains can lead to spurious conclusions regarding technology improvement, yield risk and skewness of yield. This paper addresses some limitations in the literature that result from not taking into account weather, and proposes an approach to incorporate weather into modeling yield.
Tipo: Conference Paper or Presentation Palavras-chave: Corn yield; Distribution; Trend; Yield risk; Agricultural Finance.
Ano: 2010 URL: http://purl.umn.edu/60908
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CHINA'S COTTON POLICY AND THE IMPACT OF CHINA'S WTO ACCESSION AND BT COTTON ADOPTION ON THE CHINESE AND U.S. COTTON SECTORS AgEcon
Fang, Cheng; Babcock, Bruce A..
In this paper we provide an analysis of China's cotton policy and develop a framework to quantify the impact of both China's World Trade Organization (WTO) accession and Bt (Bacillus thuringiensis) cotton adoption on Chinese and U.S. cotton sectors. We use a Chinese cotton sector model consisting of supply, demand, price linkages, and textiles output equations. A two-stage framework model provides gross cropping area and total area for cotton and major substitute crops from nine cotton-producing regions in China. Cotton demand, total fiber demand, and cotton share are estimated for each end user. The estimated parameters from the Chinese model are then used with the Food and Agricultural Policy Research Institute (FAPRI) modeling system to simulate various...
Tipo: Working or Discussion Paper Palavras-chave: Agricultural trade; Bt technology; China and cotton policy; U.S. cotton exports; World Trade Organization; WTO accession; Crop Production/Industries.
Ano: 2003 URL: http://purl.umn.edu/18556
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Impact of High Crop Prices on Environmental Quality: A Case of Iowa and the Conservation Reserve Program AgEcon
Secchi, Silvia; Babcock, Bruce A..
Growing demand for corn due to the expansion of ethanol has increased concerns that environmentally sensitive lands retired from agricultural production into the Conservation Reserve Program (CRP) will be cropped again. Iowa produces more ethanol than any other state in the United States, and it also produces the most corn. Thus, an examination of the impacts of higher crop prices on CRP land in Iowa can give insight into what we might expect nationally in the years ahead if crop prices remain high. We construct CRP land supply curves for various corn prices and then estimate the environmental impacts of cropping CRP land through the Environmental Policy Integrated Climate (EPIC) model. EPIC provides edge-of-field estimates of soil erosion, nutrient loss,...
Tipo: Working or Discussion Paper Palavras-chave: Agricultural markets; Conservation Reserve Program; Environmental quality; Crop Production/Industries; Environmental Economics and Policy.
Ano: 2007 URL: http://purl.umn.edu/9373
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MOVING FROM UNIFORM TO VARIABLE FERTILIZER RATES ON IOWA CORN: EFFECTS ON RATES AND RETURNS AgEcon
Babcock, Bruce A.; Pautsch, Gregory R..
This study develops a model based on the yield potential of various soil types in 12 Iowa counties to estimate the potential value of switching from uniform to variable fertilizer rates. Results indicate modest increases in the gross returns over fertilizer costs, ranging from $7.43 to $1.52 per acre. The net profitability of variable-rate technology (VRT) is sensitive to the per acre costs of moving to a VRT program. Under the assumptions of the model, applying variable rates would increase yield by 0.05 to 0.5 bushels per acre, and would reduce fertilizer costs by $1.19 to $6.83 per acre.
Tipo: Journal Article Palavras-chave: Crop Production/Industries.
Ano: 1998 URL: http://purl.umn.edu/31195
Registros recuperados: 147
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