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 language | English (US) |
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Pages (from-to) | 353-368 |
Number of pages | 16 |
Journal | European Review of Agricultural Economics |
Volume | 31 |
Issue number | 3 |
DOIs | |
State | Published - Sep 2004 |
Keywords
- Counter-cyclical programme
- Crop insurance
- Government payments
- Risk management
ASJC Scopus subject areas
- Agricultural and Biological Sciences (miscellaneous)
- Economics and Econometrics