Do Direct Payments and Crop Insurance Influence Commercial Farm Survival and Decisions to Expand?

Christopher Burns and Daniel Prager

No 235693, 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts from Agricultural and Applied Economics Association

Abstract: This paper seeks to understand the effect of crop insurance and direct payments on farm survival and growth, and how this effect differs by the economic size of the farm. Using data from the Agricultural Censuses of 2007 and 2012, along with additional county-level data, we estimate a three stage model that accounts for sample selection bias and the endogeneity of the choice to purchase crop insurance. We also control for characteristics of the principal operator, farm household, and farm operation. Our preliminary results show that government policies in place over the period from 2007 to 2012 played a small but important role in the survival and growth of US commercial farms.

Keywords: Agricultural and Food Policy; Agricultural Finance; Production Economics (search for similar items in EconPapers)
Pages: 33
New Economics Papers: this item is included in nep-agr and nep-ias
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/235693/files/B ... rvival_Expansion.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea16:235693

DOI: 10.22004/ag.econ.235693

Access Statistics for this paper

More papers in 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().