THE CROWDING OUT EFFECTS OF THE 2002 FARM BILL ON HEDGING: EVIDENCE FROM PACIFIC NORTHWEST GRAIN FARMS

H. Holly Wang, Larry D. Makus and Xiaomei Chen

No 36259, 2004 Annual Meeting, June 30-July 2, 2004, Honolulu, Hawaii from Western Agricultural Economics Association

Abstract: The 2002 Food Security and Rural Investment (FSRI) Act introduced a price protection program called Counter Cyclical Payments (CCP) to major grain producers in the US. The CCP program is an addition to the Loan Deficiency Payment (LDP) and Direct Payment (DP) programs from the previous 1996 Federal Agriculture Improvement and Reform (FAIR) Act. At the same time, US federally subsidized crop revenue insurance programs also protect farmers from market and production risks. These government policy programs may crowd out the traditional price risk management role of hedging in commodity futures markets.

Keywords: Agricultural and Food Policy; Crop Production/Industries (search for similar items in EconPapers)
Pages: 33
Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:ags:waeaho:36259

DOI: 10.22004/ag.econ.36259

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