Does subsidized crop insurance affect farm industry structure? Lessons from the US

被引:11
|
作者
Azzam, Azzeddine [1 ]
Walters, Cory [2 ]
Kaus, Taylor [3 ]
机构
[1] Univ Nebraska, Dept Agr Econ, 103E Filley Hall, Lincoln, NE 68583 USA
[2] Univ Nebraska, Dept Agr Econ, 304B Filley Hall, Lincoln, NE 68583 USA
[3] Conterra Ag Capita, 1120 Locust St, W Des Moines, IA 50265 USA
关键词
Crop insurance; Farm consolidation; Long-run competitive equilibrium; GOVERNMENT PAYMENTS; IMPACTS; SIZE;
D O I
10.1016/j.jpolmod.2021.06.003
中图分类号
F [经济];
学科分类号
02 ;
摘要
Farm policies have unintended consequences and subsidized crop insurance is no different. We draw on the theory of long-run competitive equilibrium to estimate the effect of subsidized crop insurance on farm output and number of farms in the U.S. Results show that the subsidy led to fewer and larger farms. To the extent that larger farms benefit disproportionately from other farm subsidies, known to increase farm size, subsidized crop insurance can only contribute to further farm consolidation, with consequences for sustainability and depopulation of rural communities. These unintended effects could make the case for reverting to ad-hoc disaster payment programs. (c) 2021 The Society for Policy Modeling. Published by Elsevier Inc. All rights reserved.
引用
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页码:1167 / 1180
页数:14
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