The Effects of Crop Insurance Subsidies and Sodsaver on Land-Use Change

dc.contributor.author Miao, Ruiqing
dc.contributor.author Hennessy, David
dc.contributor.author Feng, Hongli
dc.contributor.author Feng, Hongli
dc.contributor.department Economics
dc.contributor.department Center for Agricultural and Rural Development
dc.date 2021-08-03T14:11:09.000
dc.date.accessioned 2021-08-14T04:32:13Z
dc.date.available 2021-08-14T04:32:13Z
dc.date.copyright Fri Jan 01 00:00:00 UTC 2016
dc.date.issued 2016-05-01
dc.description.abstract <p>It is well known that insurance market information asymmetry can cause socially excessive cropping of yield-risky land. We show that crop insurance subsidies can cause the same problem absent information failures. Using field-level yield data, we find an inversed U-shaped relationship between crop prices and crop insurance subsidies’ land-use impacts. For seventeen counties in the U.S. Prairie Pothole Region, simulations show that 0.05% to 3.3% (about 2,600 to 157,900 acres) of land under crop insurance would not have been converted from grassland had premium subsidies not existed. Land-use impacts of Sodsaver in the 2014 Farm Act are also quantified.</p>
dc.description.comments <p>This article is published as Miao, Ruiqing, David A. Hennessy, and Hongli Feng. "The effects of crop insurance subsidies and Sodsaver on land-use change." <em>Journal of Agricultural and Resource Economics</em> 41 (2016): 247-265. doi:<a href="http://dx.doi.org/10.22004/ag.econ.235189" target="_blank" title="DOI">10.22004/ag.econ.235189</a>. Posted with permission.</p>
dc.format.mimetype application/pdf
dc.identifier archive/lib.dr.iastate.edu/econ_las_pubs/796/
dc.identifier.articleid 1803
dc.identifier.contextkey 24076566
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath econ_las_pubs/796
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/JwjbVOVw
dc.language.iso en
dc.source.bitstream archive/lib.dr.iastate.edu/econ_las_pubs/796/2016_Feng_EffectsCrop.pdf|||Sat Jan 15 01:56:40 UTC 2022
dc.source.uri 10.22004/ag.econ.235189
dc.subject.disciplines Agricultural and Resource Economics
dc.subject.disciplines Agriculture
dc.subject.disciplines Economic Policy
dc.subject.disciplines Insurance
dc.subject.keywords copula
dc.subject.keywords crop insurance
dc.subject.keywords grassland
dc.subject.keywords land use
dc.subject.keywords Sodsaver
dc.subject.keywords subsidy chasing
dc.title The Effects of Crop Insurance Subsidies and Sodsaver on Land-Use Change
dc.type article
dc.type.genre article
dspace.entity.type Publication
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relation.isOrgUnitOfPublication 1a6be5f1-4f64-4e48-bb66-03bbcc25c76d
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