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Understanding Cotton Producer’s Crop Insurance Choices Under the 2014 Farm Bill

Author

Listed:
  • Luitel, Kishor P.
  • Hudson, Darren
  • Knight, Thomas O.

Abstract

The 2014 Farm Bill adds the Stacked Income Protection Plan (STAX) and the Supplemental Coverage Option (SCO) to the suite of insurance choices for producers in 2015. Unlike other crops with the ARC and PLC programs, cotton only has access to crop insurance under the new Farm Bill. Therefore, the crop insurance choices that farmers make will constitute the only government safety net for farm income. The overall objective of this research is to understand the impact of the new crop insurance policy options for cotton on farmer decisions regarding risk management strategies. A mail survey was conducted in February 2015, at the time when farmers were making insurance purchase decisions. Our results suggest that cotton farmers are taking benefits of 2014 Farm Bill, which enables them to take separate dry land and irrigated insurance policies.

Suggested Citation

  • Luitel, Kishor P. & Hudson, Darren & Knight, Thomas O., 2015. "Understanding Cotton Producer’s Crop Insurance Choices Under the 2014 Farm Bill," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205438, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea15:205438
    DOI: 10.22004/ag.econ.205438
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    File URL: https://ageconsearch.umn.edu/record/205438/files/AAEA_2015_Luitel_Hudson_Knight.pdf
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    References listed on IDEAS

    as
    1. Dismukes, Robert & Coble, Keith H. & Miller, Corey & O'Donoghue, Erik J., 2013. "The Effects of Area-based Revenue Protection on Producers’ Choices of Farm-level Revenue Insurance," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149545, Agricultural and Applied Economics Association.
    2. Harun Bulut & Keith J. Collins, 2014. "Designing farm supplemental revenue coverage options on top of crop insurance coverage," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 74(3), pages 397-426, August.
    3. Luitel, Kishor & Knight, Thomas & Hudson, Darren, 2015. "Evaluation of Crop Insurance Choices for Cotton Producers under the 2014 Farm Bill," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196882, Southern Agricultural Economics Association.
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    Cited by:

    1. Lauriane Yehouenou & Barry J Barnett & Ardian Harri & Keith H Coble, 2018. "STAX Appeal?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 40(4), pages 563-584, December.
    2. Devadoss, Stephen & Luckstead, Jeff, 2018. "Production and Moral Hazard Effects of 2014 Cotton Farm Bill Policies," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266763, Southern Agricultural Economics Association.
    3. Luitel, Kishor P. & Adhikari, Shyam & Wright, Andrew P. & Hudson, Michael D. & Knight, Thomas O., 2017. "Believing Yourself: Perceived Risk Taking Behavior and Risk Management Decision of Texas Cotton Farmers," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258242, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    Agribusiness; Agricultural and Food Policy; Institutional and Behavioral Economics; Risk and Uncertainty;
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