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.
机构:
New Mexico State Univ, Dept Agr Econ & Agr Business, Las Cruces, NM 88003 USANew Mexico State Univ, Dept Agr Econ & Agr Business, Las Cruces, NM 88003 USA
Regmi, Madhav
Featherstone, Allen M.
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New Mexico State Univ, Dept Agr Econ & Agr Business, Las Cruces, NM 88003 USA
Kansas State Univ, Dept Agr Econ, Manhattan, KS USANew Mexico State Univ, Dept Agr Econ & Agr Business, Las Cruces, NM 88003 USA
机构:
New Mexico State Univ, Dept Agr Econ & Agr Business, Las Cruces, NM 88003 USANew Mexico State Univ, Dept Agr Econ & Agr Business, Las Cruces, NM 88003 USA
Regmi, Madhav
Briggeman, Brian C.
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Kansas State Univ, Dept Agr Econ, Manhattan, KS 66506 USANew Mexico State Univ, Dept Agr Econ & Agr Business, Las Cruces, NM 88003 USA
Briggeman, Brian C.
Featherstone, Allen M.
论文数: 0引用数: 0
h-index: 0
机构:
Kansas State Univ, Dept Agr Econ, Manhattan, KS 66506 USANew Mexico State Univ, Dept Agr Econ & Agr Business, Las Cruces, NM 88003 USA