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STAX Appeal?

Author

Listed:
  • Lauriane Yehouenou
  • Barry J Barnett
  • Ardian Harri
  • Keith H Coble

Abstract

The Stacked Income Protection Plan (STAX) county‐level insurance product is analyzed for cotton producers in Texas. In contrast to studies based on representative farms, this analysis uses actual farm‐level yield data, which allows one to observe the heterogeneity of STAX effectiveness across farms in a county. The findings indicate that, for most farms, STAX is not a very effective alternative to farm‐level crop insurance. However, contrary to observed behavior, the findings suggest that many cotton producers in Texas would benefit from using STAX as a complement to their farm‐level crop insurance.

Suggested Citation

  • Lauriane Yehouenou & Barry J Barnett & Ardian Harri & Keith H Coble, 2018. "STAX Appeal?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 40(4), pages 563-584, December.
    • Handle: RePEc:wly:apecpp:v:40:y:2018:i:4:p:563-584
    DOI: 10.1093/aepp/ppx060
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    References listed on IDEAS

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