Impacts of a Standing Disaster Payment Program on U.S. Crop Insurance

This research investigates the potential effects of the standing disaster assistance program proposed in the Senate version of the 2008 Farm Bill. Results suggest no significant impact on producer crop insurance purchase decisions. Payments under the program should be expected to differ considerably across geographic regions and levels of diversification, with the program providing the greatest benefit to undiversified producers in more risky production regions (e.g., the Southern Plains).