Economics at your fingertips  

Evaluating Policy Design Choices for the Margin Protection Program for Dairy Producers: An Expected Indemnity Approach

John Newton, Cameron S. Thraen and Marin Bozic

Applied Economic Perspectives and Policy, 2016, vol. 38, issue 4, 712-730

Abstract: The Agricultural Act of 2014 replaced dairy product price supports and countercyclical income support payments with the Margin Protection Program for Dairy Producers. Using farm-level data, producer decisions and aggregate policy costs under a variety of risk environments and policy design alternatives are simulated. Fixed premium rates may result in budget outlays that are substantially higher than for equivalent variable-rate insurance subsidized at levels observed in revenue-based crop insurance policies. Due to the absence of adjusted gross income or production eligibility constraints, a significant portion of benefits may accrue to a small share of large dairy farms.

Keywords: Dairy; Margin Protection Program; Agricultural Act of 2014; Monte-Carlo simulations; farm program decisions (search for similar items in EconPapers)
JEL-codes: Q11 Q12 Q13 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link) (application/pdf)
Access to full text is restricted to subscribers.

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:

Ordering information: This journal article can be ordered from

Access Statistics for this article

Applied Economic Perspectives and Policy is currently edited by Timothy Park, Tomislav Vukina and Ian Sheldon

More articles in Applied Economic Perspectives and Policy from Agricultural and Applied Economics Association Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().

Page updated 2018-09-08
Handle: RePEc:oup:apecpp:v:38:y:2016:i:4:p:712-730.