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The Evolving Distribution of Payments From Commodity, Conservation, and Federal Crop Insurance Programs

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  • McFadden, Jonathan R.
  • Hoppe, Robert A.

Abstract

Agricultural policies—through Federal commodity, conservation, and crop insurance programs—aim to mitigate the financial risks faced by farmers and the environmental risks posed by agricultural production. The programs also provide support to farmers through direct financial assistance, in the case of commodity and conservation programs, and through premium subsidies in the case of crop insurance. Changes in the structure of agriculture have changed the distribution of income support over time. Specifically, commodity program payments, some conservation program payments, and Federal crop insurance indemnities have shifted to larger farms as U.S. agricultural production continues to consolidate. Since the operators of larger farms have higher household incomes than those of smaller farms, commodity program payments and support through Federal crop insurance have also shifted to higher income households. This study details the extent of that shift over 25 years from 1991 through 2015.

Suggested Citation

  • McFadden, Jonathan R. & Hoppe, Robert A., 2017. "The Evolving Distribution of Payments From Commodity, Conservation, and Federal Crop Insurance Programs," Economic Information Bulletin 291932, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersib:291932
    DOI: 10.22004/ag.econ.291932
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    Cited by:

    1. Rachel M. Shellabarger & Rachel C. Voss & Monika Egerer & Shun-Nan Chiang, 2019. "Challenging the urban–rural dichotomy in agri-food systems," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 36(1), pages 91-103, March.
    2. Jonathan R. McFadden & Alicia Rosburg & Eric Njuki, 2022. "Information inputs and technical efficiency in midwest corn production: evidence from farmers' use of yield and soil maps," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(2), pages 589-612, March.
    3. Samiul Haque, 2022. "US federal farm payments and farm size: Quantile estimation on panel data," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(1), pages 139-154, February.
    4. Todd, Jessica E. & Whitt, Christine & Key, Nigel & Mandalay, Okkar, 2024. "An Overview of Farms Operated by Socially Disadvantaged, Women, and Limited Resource Farmers and Ranchers in the United States," Economic Information Bulletin 340512, United States Department of Agriculture, Economic Research Service.
    5. McFadden, Jonathan & Njuki, Eric & Griffin, Terry, 2023. "Precision Agriculture in the Digital Era: Recent Adoption on U.S. Farms," USDA Miscellaneous 333550, United States Department of Agriculture.
    6. Jayalath, Tharaka A. & Grala, Robert K. & Grado, Stephen C. & Evans, David L., 2021. "Increasing provision of ecosystem services through participation in a conservation program," Ecosystem Services, Elsevier, vol. 50(C).
    7. McDonald, James M. & Law, Jonathan & Mosheim, Roberto, 2020. "Consolidation in U.S. Dairy Farming," Economic Research Report 303971, United States Department of Agriculture, Economic Research Service.
    8. Collart, Alba J. & Ishee, Shea G. & Coble, Keith H., 2021. "Divvying Up the Pie: U.S. Adults’ Preferences for USDA Expenditures in 2018," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 46(3), September.
    9. James M. MacDonald, 2020. "Tracking the Consolidation of U.S. Agriculture," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(3), pages 361-379, September.
    10. Callahan, Scott & Hellerstein, Daniel, 2022. "Access to Farmland by Beginning and Socially Disadvantaged Farmers: Issues and Opportunities," USDA Miscellaneous 333543, United States Department of Agriculture.
    11. Gabriel Medina & Catherine Isley & J. Arbuckle, 2021. "Promoting sustainable agriculture: Iowa stakeholders’ perspectives on the US Farm Bill conservation programs," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(1), pages 173-194, January.

    More about this item

    Keywords

    Agricultural Finance; Environmental Economics and Policy; Industrial Organization; Risk and Uncertainty;
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