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Implications of Disaster Assistance Reform for Non-insured Crops

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  • Joy Harwood
  • Agapi Somwaru

Abstract

With recent crop insurance reform, disaster aid to producers of crops for which federal crop insurance was not available has changed significantly. A newly created Non-insured Assistance Program (NAP) is a standing disaster aid program for non-insured crops including most vegetables and some tree crops. To receive a payment, a farmer has to meet NAP's “area” triggered loss in addition to usual individual loss criteria. In this paper we examine the implications of these two-tiered criteria for NAP payments in the context of California agriculture. Our analysis indicates that the area loss requirement likely results in a sharp reduction in disaster payments for non-insured crops. Copyright 1997, Oxford University Press.

Suggested Citation

  • Joy Harwood & Agapi Somwaru, 1997. "Implications of Disaster Assistance Reform for Non-insured Crops," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 419-429.
  • Handle: RePEc:oup:ajagec:v:79:y:1997:i:2:p:419-429
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    File URL: http://hdl.handle.net/10.2307/1244140
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    Cited by:

    1. Skees, Jerry R. & Harwood, Joy L. & Somwaru, Agapi & Perry, Janet E., 1998. "The Potential For Revenue Insurance Policies In The South," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(1), pages 1-15, July.
    2. Garrett, Thomas A. & Marsh, Thomas L. & Marshall, Maria I., 2006. "Political allocation of US agriculture disaster payments in the 1990s," International Review of Law and Economics, Elsevier, vol. 26(2), pages 143-161, June.

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