The Effects of Crop Insurance Subsidies and Sodsaver on Land-Use Change
Ruiqing Miao,
David Hennessy and
Hongli Feng
Journal of Agricultural and Resource Economics, 2016, vol. 41, issue 2
Abstract:
It is well known that insurance market information asymmetry can cause socially excessive cropping of yield-risky land. We show that crop insurance subsidies can cause the same problem absent information failures. Using field-level yield data, we find an inversed U-shaped relationship between crop prices and crop insurance subsidies’ land-use impacts. For seventeen counties in the U.S. Prairie Pothole Region, simulations show that 0.05% to 3.3% (about 2,600 to 157,900 acres) of land under crop insurance would not have been converted from grassland had premium subsidies not existed. Land-use impacts of Sodsaver in the 2014 Farm Act are also quantified.
Keywords: Agricultural and Food Policy; Land Economics/Use; Production Economics; Risk and Uncertainty (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)
Downloads: (external link)
https://ageconsearch.umn.edu/record/235189/files/J ... __5_Miao_247-265.pdf (application/pdf)
Related works:
Working Paper: The Effects of Crop Insurance Subsidies and Sodsaver on Land-Use Change (2016) 
Working Paper: Effects of Crop Insurance Subsidies and Sodsaver on Land Use Change, The (2012) 
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:jlaare:235189
DOI: 10.22004/ag.econ.235189
Access Statistics for this article
More articles in Journal of Agricultural and Resource Economics from Western Agricultural Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().