Relationships among government payments, crop insurance payments and crop revenue

Research output: Contribution to journalReview articlepeer-review

Abstract

Risk abatement characteristics of a public sector programme (counter-cyclical payments) and a quasi-private market instrument (crop insurance) are assessed at the farm level. Crop market revenues and insurance payments have strong linkages to pre-planting price and yield conditions, whereas the conditions underlying government programme payments are less affected by prices, crop shares or actual yields. Contrary to a belief often expressed by producers, the counter-cyclical programme does not duplicate or substitute strongly for crop insurance programmes. It is also found that measurement of crop-revenue risk abatement from using either public or quasi-private instruments can be particularly sensitive to the price environment and components of market revenue.

Original languageEnglish (US)
Pages (from-to)353-368
Number of pages16
JournalEuropean Review of Agricultural Economics
Volume31
Issue number3
DOIs
StatePublished - Sep 2004

Keywords

  • Counter-cyclical programme
  • Crop insurance
  • Government payments
  • Risk management

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

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