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Modeling Correlated and Disaggregated Crop Revenue Distributions: Implications under Mixed Policy and Program Initiatives

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  • Jansen, Jim A.
  • Stockton, Matthew C.
  • Lubben, Bradley D.

Abstract

This work outlines the quantitative procedures and results of the policy effects for alternative designs of federal revenue-based farm income safety net programs on eight individual representative farms across the state of Nebraska. Measures include financial impacts of the farm crop revenue-based safety net with a state revenue trigger versus potential alternative programs involving guarantees at the district, county, and farm levels. The methodology correlates national yield and prices with state, district, county, and farm-level yields. Results indicate that decreasing the aggregation of the revenue guarantee increases expected farm-level payments and program costs for the revenue-based safety net.

Suggested Citation

  • Jansen, Jim A. & Stockton, Matthew C. & Lubben, Bradley D., 2012. "Modeling Correlated and Disaggregated Crop Revenue Distributions: Implications under Mixed Policy and Program Initiatives," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124688, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea12:124688
    DOI: 10.22004/ag.econ.124688
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    References listed on IDEAS

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    1. Richardson, James W. & Anderson, David P. & Smith, Edward G. & Womack, Abner W. & Feldman, Paul A. & Schumann, Keith D. & Outlaw, Joe L. & Klose, Steven L. & Schwart, Robert B., Jr. & Ochoa, Rene F. &, 2001. "Representative Farms Economic Outlook for the January 2001 FAPRI/AFPC Baseline," Working Papers 42783, Texas A&M University, Agricultural and Food Policy Center.
    2. Keith H. Coble & Robert Dismukes, 2008. "Distributional and Risk Reduction Effects of Commodity Revenue Program Design ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(3), pages 543-553.
    3. Joshua D. Woodard & Bruce J. Sherrick & Gary D. Schnitkey, 2010. "Revenue Risk-Reduction Impacts of Crop Insurance in a Multicrop Framework," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(3), pages 472-488.
    4. Zulauf, Carl R. & Schnitkey, Gary D. & Langemeier, Michael R., 2010. "Average Crop Revenue Election, Crop Insurance, and Supplemental Revenue Assistance: Interactions and Overlap for Illinois and Kansas Farm Program Crops," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 42(3), pages 1-15, August.
    5. Arriola, Christine & Dismukes, Robert & Coble, Keith H. & Ubilava, David & Cooper, Joseph C., 2011. "Alternatives to a State-Based ACRE Program: Expected Payments Under a National, Crop District, or County Base," Economic Research Report 262235, United States Department of Agriculture, Economic Research Service.
    6. Lubben, Bradley & Jansen, Jim A. & Stockton, Matthew C., 2011. "Changing Farm Policies for Changing Times," Cornhusker Economics 306731, University of Nebraska-Lincoln, Department of Agricultural Economics.
    7. Dismukes, Robert & Arriola, Christine & Coble, Keith H., 2010. "ACRE Program Payments and Risk Reduction: An Analysis Based on Simulations of Crop Revenue Variability," Economic Research Report 262248, United States Department of Agriculture, Economic Research Service.
    8. Mario J. Miranda, 1991. "Area-Yield Crop Insurance Reconsidered," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 233-242.
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    Cited by:

    1. Lubben, Bradley & Stockton, Matthew & Protopop, Iuliia & Jansen, Jim, 2013. "Analyzing Federal Farm Program and Crop Insurance Options to Assess Policy Design and Risk Management Implications for Crop Producers," 2013 AAEA: Crop Insurance and the Farm Bill Symposium 157827, Agricultural and Applied Economics Association.
    2. Purnamasari, Ririn S., 2007. "Deforestation in Indonesia: A Household Level Analysis of the Role of Forest Dependence and Poverty," 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand 10353, Australian Agricultural and Resource Economics Society.
    3. Tripp, Amanda S. & Henderson, Kathryn E. & Andreyeva, Tatiana, 2012. "Grocery Purchases of WIC and SNAP Recipients: Quantifying the Effect of a Prescriptive Program Design," 2012 AAEA/EAAE Food Environment Symposium 123514, Agricultural and Applied Economics Association.

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    Keywords

    Agricultural and Food Policy; Risk and Uncertainty;

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