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Do Direct Payments and Crop Insurance Influence Commercial Farm Survival and Decisions to Expand?

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  • Burns, Christopher
  • Prager, Daniel

Abstract

This paper seeks to understand the effect of crop insurance and direct payments on farm survival and growth, and how this effect differs by the economic size of the farm. Using data from the Agricultural Censuses of 2007 and 2012, along with additional county-level data, we estimate a three stage model that accounts for sample selection bias and the endogeneity of the choice to purchase crop insurance. We also control for characteristics of the principal operator, farm household, and farm operation. Our preliminary results show that government policies in place over the period from 2007 to 2012 played a small but important role in the survival and growth of US commercial farms.

Suggested Citation

  • Burns, Christopher & Prager, Daniel, "undated". "Do Direct Payments and Crop Insurance Influence Commercial Farm Survival and Decisions to Expand?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235693, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235693
    DOI: 10.22004/ag.econ.235693
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    References listed on IDEAS

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    Cited by:

    1. Soliwoda, Michal, 2016. "Crop and livestock insurance in Poland reconsidered: challenges from the perspective of agricultural policy," 156th Seminar, October 4, 2016, Wageningen, The Netherlands 249991, European Association of Agricultural Economists.

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    Keywords

    Agricultural and Food Policy; Agricultural Finance; Production Economics;
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