Nutrient Best Management Practice Insurance and Farmer Perceptions of Adoption Risk

This paper explores the effect farmer perceptions concerning how best management practice (BMP) adoption changes the profit distribution have on BMP adoption incentives and the potential for insurance to increase these incentives. Adoption indifference curves illustrate the effect of farmer perceptions on BMP adoption incentives and the potential for insurance to expand the set of perceptions consistent with adoption. Empirical analysis quantifies these conceptual results for nutrient BMP insurance, a new policy available to corn farmers as part of a USDA-Risk Management Agency pilot program in four states. Results indicate that nutrient BMP insurance can have economically relevant effects on farmer adoption incentives.


Issue Date:
2004-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/43460
Published in:
Journal of Agricultural and Applied Economics, Volume 36, Number 3
Page range:
657-673
Total Pages:
17
JEL Codes:
D8; Q12; Q16; Q21




 Record created 2017-04-01, last modified 2017-08-25

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)