Factors influencing producers' perceptions about the importance of government support programmes in agriculture: application of a semi-parametric ordered response model

Roderick Rejesus, Bruce Sherrick, Gary Schnitkey and Cesar Escalante

Applied Economics, 2009, vol. 41, issue 24, pages 3081-3092

Abstract: This article examines factors affecting producers' perceptions towards the relative importance of government support programmes in agriculture. Specific attention is placed on determining the effect of crop insurance usage on farmers' views about the importance of government programme payments. Results from a semi-parametric ordered response model shows that producers who use yield- or revenue-based crop insurance products also tend to view government programmes with higher importance, suggesting that crop insurance and direct government support programmes tend to be complements rather than substitutes.

Date: 2009

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