Safety Nets or Trampolines? Federal Crop Insurance, Disaster Assistance, and the Farm Bill

We review the implications of the 2007 Farm Bill for the risk management dimensions of U.S. agriculture and policy. Legislative proposals suggest significant changes in risk management policy, including the introduction of state or national revenue insurance. We also pursue an empirical analysis of the interrelationships of crop insurance, disaster relief, and farm profitability. We find an inverse relationship between disaster assistance and insurance purchases. Our analysis also suggests that farmers that buy insurance and that receive disaster payments tend to have higher returns to farming.


Issue Date:
2008-08
Publication Type:
Journal Article
Record Identifier:
http://ageconsearch.umn.edu/record/46980
PURL Identifier:
http://purl.umn.edu/46980
Published in:
Journal of Agricultural and Applied Economics, Volume 40, Number 2
Page range:
415-429
Total Pages:
15
JEL Codes:
Q18




 Record created 2017-04-01, last modified 2018-01-22

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