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Land Retirement Program Design and Empirical Assessments In the Presence of Crop Insurance Subsidies


  • Hennessy, David A.
  • Miao, Ruiqing
  • Feng, Hongli


The U.S. Federal Government implements environmental, biofuels and crop insurance programs that influence land use. They are not well-integrated in that cost savings from crop insurance subsidies are not acknowledged when screening land for retirement or when calculating the cost of land retirement programs. We identify and evaluate an optimal benefit index for enrollment in a land retirement program that includes a sub-index to rank land according to insurance subsidy savings. All else equal, land ranked higher in the Lorenz stochastic order should be retired first. Empirical analysis based on field level data will be provided.

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  • Hennessy, David A. & Miao, Ruiqing & Feng, Hongli, 2011. "Land Retirement Program Design and Empirical Assessments In the Presence of Crop Insurance Subsidies," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 104002, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea11:104002
    DOI: 10.22004/ag.econ.104002

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    Land Economics/Use; Risk and Uncertainty;

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