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Implications of Alternative Crop Insurance Subsidies

Author

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  • Maisashvili, Aleksandre
  • Bryant, Henry L.
  • Jones, Jason P.H.

Abstract

In this research, we analyze the economic effects across various crop insurance subsidy and policy scenarios to determine producer insurance choice response, total premium and subsidy payments and study their economic implications on dryland corn, soybean, and winter wheat producers. We rely on the expected utility maximization framework to rank policy combination sets that are available to a typical producer to analyze the impacts of crop insurance subsidy changes and elimination of certain insurance policies across the three crops. Several scenarios were analyzed across subsidy and policy options and were found to have noticeably different farmer behavioral responses and economic implications.

Suggested Citation

  • Maisashvili, Aleksandre & Bryant, Henry L. & Jones, Jason P.H., 2020. "Implications of Alternative Crop Insurance Subsidies," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 52(2), pages 240-263, May.
    • Handle: RePEc:cup:jagaec:v:52:y:2020:i:2:p:240-263_5
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    Cited by:

    1. Agnieszka Kurdyś-Kujawska & Agnieszka Sompolska-Rzechuła & Joanna Pawłowska-Tyszko & Michał Soliwoda, 2021. "Crop Insurance, Land Productivity and the Environment: A Way forward to a Better Understanding," Agriculture, MDPI, vol. 11(11), pages 1-17, November.
    2. Marco Rogna & Günter Schamel & Alex Weissensteiner, 2023. "Modelling the switch from hail insurance to antihail nets," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(1), pages 118-136, January.

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