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The SURE Program and Its Interaction with Other Federal Farm Programs

Author

Listed:
  • Ubilava, David
  • Barnett, Barry J.
  • Coble, Keith H.
  • Harri, Ardian

Abstract

We investigate potential effects of the Supplemental Revenue Assistance Payments (SURE) program introduced in the 2008 Farm Bill. Results suggest little impact on optimal crop insurance purchase decisions, though the SURE program does seem to provide an incentive for mid-level insurance coverage. For producers in the price counter-cyclical payment (PCCP) program, SURE payments are actually higher (lower) when commodity prices are high (low). This is not the case for producers in the Average Crop Revenue Election (ACRE) program.

Suggested Citation

  • Ubilava, David & Barnett, Barry J. & Coble, Keith H. & Harri, Ardian, 2011. "The SURE Program and Its Interaction with Other Federal Farm Programs," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(3), pages 1-19.
    • Handle: RePEc:ags:jlaare:119184
    DOI: 10.22004/ag.econ.119184
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    References listed on IDEAS

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    1. Vincent H. Smith & Myles Watts, 2010. "The New Standing Disaster Program: A SURE Invitation to Moral Hazard Behavior," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(1), pages 154-169.
    2. Anderson, John D. & Harri, Ardian & Coble, Keith H., 2009. "Techniques for Multivariate Simulation from Mixed Marginal Distributions with Application to Whole-Farm Revenue Simulation," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(1), pages 1-15, April.
    3. Egelkraut, Thorsten M. & Garcia, Philip & Pennings, Joost M.E. & Sherrick, Bruce J., 2006. "Producers' Yield and Yield Risk: Perceptions versus Reality and Crop Insurance Use," 2006 Annual meeting, July 23-26, Long Beach, CA 21369, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Vincent H. Smith & Myles Watts, 2010. "The New Standing Disaster Program: A SURE Invitation to Moral Hazard Behavior," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(1), pages 154-169.
    5. James S. Eales & Brian K. Engel & Robert J. Hauser & Sarahelen R. Thompson, 1990. "Grain Price Expectations of Illinois Farmers and Grain Merchandisers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 701-708.
    6. Pease, James W., 1992. "A Comparison Of Subjective And Historical Crop Yield Probability Distributions," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 24(2), pages 1-10, December.
    7. G Lien & JB Hardaker, 2001. "Whole-farm planning under uncertainty: impacts of subsidy scheme and utility function on portfolio choice in Norwegian agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 28(1), pages 17-36, March.
    8. Joseph W. Glauber, 2004. "Crop Insurance Reconsidered," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1179-1195.
    9. Pease, James W., 1992. "A Comparison of Subjective and Historical Crop Yield Probability Distributions," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 24(2), pages 23-32, December.
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    Cited by:

    1. Coble, Keith H. & Barnett, Barry J. & Riley, John Michael, 2013. "Challenging Belief in the Law of Small Numbers," 2013 AAEA: Crop Insurance and the Farm Bill Symposium 156958, Agricultural and Applied Economics Association.
    2. Barnett, Barry J., 2014. "The Last Farm Bill?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 46(3), pages 311-319, August.
    3. Wang, Yang & Barnett, Barry J. & Coble, Keith H. & Harri, Ardian, 2012. "Yield Aggregation Impacts on a “Deep Loss” Systemic Risk Protection Program," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124875, Agricultural and Applied Economics Association.

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