Implications of Disaster Assistance Reform for Non-insured Crops

Joy Harwood and Agapi Somwaru

American Journal of Agricultural Economics, 1997, vol. 79, issue 2, 419-429

Abstract: With recent crop insurance reform, disaster aid to producers of crops for which federal crop insurance was not available has changed significantly. A newly created Non-insured Assistance Program (NAP) is a standing disaster aid program for non-insured crops including most vegetables and some tree crops. To receive a payment, a farmer has to meet NAP's “area” triggered loss in addition to usual individual loss criteria. In this paper we examine the implications of these two-tiered criteria for NAP payments in the context of California agriculture. Our analysis indicates that the area loss requirement likely results in a sharp reduction in disaster payments for non-insured crops. Copyright 1997, Oxford University Press.

Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:79:y:1997:i:2:p:419-429

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