Analysis of the Supplemental Coverage Option

Scott Gerlt and Patrick Westhoff

No 156704, 2013 AAEA: Crop Insurance and the Farm Bill Symposium from Agricultural and Applied Economics Association

Abstract: The proposed Supplemental Coverage Option (SCO) crop insurance program is included in both the House and Senate farm bills. We develop a county level model to analyze program indemnities. The FAPRI-MU stochastic U.S. model is used to estimate market effects of the program. We find the net 10-year fiscal cost of SCO to be about $9.8 billion and $5.8 billion for the House and Senate bills, respectively. While corn and peanuts have the largest absolute payments per acre, wheat and peanuts have the highest relative effects in area and farm price. However, the market impacts of SCO are quite small.

Keywords: Agricultural and Food Policy; Demand and Price Analysis; Production Economics; Research Methods/ Statistical Methods; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 27
Date: 2013
New Economics Papers: this item is included in nep-ias
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaeaci:156704

DOI: 10.22004/ag.econ.156704

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