AgEcon Search

AgEcon Search >
       Journal of Agricultural and Applied Economics >
          Volume 43, Number 02, May 2011 >

Please use this identifier to cite or link to this item: http://purl.umn.edu/104623

Title: Crop Insurance, Disaster Payments and Land Use Change: The Effect of Sodsaver on Incentives for Grassland Conversion
Authors: Claassen, Roger
Cooper, Joseph C.
Carriazo, Fernando
Authors (Email): Claassen, Roger (claassen@ers.usda.gov)
Keywords: bootstrap
crop insurance
grassland
joint densities
Sodsaver
Supplemental Revenue Assistance
JEL Codes: Q2
Issue Date: 2011-05
Abstract: Subsidized crop insurance may encourage conversion of native grassland to cropland. The Sodsaver provision of the 2008 farm bill could deny crop insurance on converted land in the Prairie Pothole states for 5 years. Supplemental Revenue Assistance payments, which are linked to crop insurance purchases, could also be withheld. Using representative farms, we estimate that Sodsaver would reduce expected crop revenue by up to 8% and expected net return by up to 20%, while increasing the standard deviation of revenue by as much as 6% of market revenue. Analysis based on elasticities from the literature suggests that Sodsaver would reduce grassland conversion by 9% or less.
URI: http://purl.umn.edu/104623
Institution/Association: Journal of Agricultural and Applied Economics>Volume 43, Number 02, May 2011
Total Pages: 17
From Page: 195
To Page: 211
Collections:Volume 43, Number 02, May 2011

Files in This Item:

File Description SizeFormat
jaae398.pdf607KbPDFView/Open
Recommend this item

All items in AgEcon Search are protected by copyright.

 

 

Brought to you by the University of Minnesota Department of Applied Economics and the University of Minnesota Libraries with cooperation from the Agricultural and Applied Economics Association.

All papers are in Acrobat (.pdf) format. Get Adobe Reader

Contact Us

Powered by: