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Does Farm Size Matter? Distribution of Crop Insurance Subsidies and Government Program Payments across U.S. Farms

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  • Anton Bekkerman
  • Eric J. Belasco
  • Vincent H. Smith

Abstract

This study uses farm‐level information from the ARMS database to evaluate the distribution of payments from major 2014 Farm Bill safety net programs—federal crop insurance, Agricultural Risk Coverage, and Price Loss Coverage—across farm size. Results indicate that farms within the top decile for crop sales receive over two‐thirds of the total payments from these programs. Recent legislative proposals to implement payment caps on each farm are shown to impact a relatively small percentage of farms that are almost entirely within the top decile of crop sales. However, implementing these caps is likely to result in as much as $2.51 billion in taxpayer savings. These help provide direction for continued efforts to design cost‐effective, equitable agricultural safety net policies.

Suggested Citation

  • Anton Bekkerman & Eric J. Belasco & Vincent H. Smith, 2019. "Does Farm Size Matter? Distribution of Crop Insurance Subsidies and Government Program Payments across U.S. Farms," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(3), pages 498-518, September.
    • Handle: RePEc:wly:apecpp:v:41:y:2019:i:3:p:498-518
    DOI: 10.1093/aepp/ppy024
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    3. Michael A. Boland & Brian C. Briggeman & Keri Jacobs & Phil Kenkel & Gregory McKee & John L. Park, 2021. "Research Priorities for Agricultural Cooperatives and their Farmer‐Members," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 573-585, June.
    4. Joseph Glauber & Vince Smith, 2021. "Trends in US Agricultural Policy since 2000 and Implications for the Next Twenty Years," EuroChoices, The Agricultural Economics Society, vol. 20(2), pages 58-63, August.
    5. Alia DeLong & Marilyn E. Swisher & Carlene A. Chase & Tracy Irani & Jorge Ruiz-Menjivar, 2023. "The Roots of First-Generation Farmers: The Role of Inspiration in Starting an Organic Farm," Land, MDPI, vol. 12(6), pages 1-20, June.
    6. Ar. R. T. Hidayat & Corinthias P. M. Sianipar & Shizuka Hashimoto & Satoshi Hoshino & Muhammad Dimyati & Ahmad E. Yustika, 2023. "Personal Cognition and Implicit Constructs Affecting Preferential Decisions on Farmland Ownership: Multiple Case Studies in Kediri, East Java, Indonesia," Land, MDPI, vol. 12(10), pages 1-23, September.
    7. Sherzod B. Akhundjanov & Tatiana Drugova, 2022. "On the growth process of US agricultural land," Empirical Economics, Springer, vol. 63(3), pages 1727-1740, September.
    8. Belasco, Eric J. & Smith, Vincent, 2022. "The impact of policy design on payment concentration in Ad-hoc disaster Relief: Lessons from the Market Facilitation and Coronavirus food Assistance programs," Food Policy, Elsevier, vol. 106(C).
    9. Nitta, Atomu & Yamamoto, Yasutaka & Kondo, Katsunobu & Sawauchi, Daisuke, 2020. "Direct payments to Japanese farmers: Do they reduce rice income inequality? Lessons for other Asian countries," Journal of Policy Modeling, Elsevier, vol. 42(5), pages 968-981.

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