The Effects of Crop Insurance Subsidies and Sodsaver on Land-Use Change
被引:4
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作者:
Miao, Ruiqing
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机构:
Auburn Univ, Dept Agr Econ & Rural Sociol, Auburn, AL 36849 USAAuburn Univ, Dept Agr Econ & Rural Sociol, Auburn, AL 36849 USA
Miao, Ruiqing
[1
]
Hennessy, David A.
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机构:
Michigan State Univ, Dept Agr Food & Resource Econ, Food & Agr Policy, E Lansing, MI 48824 USA
Iowa State Univ, Dept Econ, Ames, IA USA
Iowa State Univ, Ctr Agr & Rural Dev, Ames, IA USAAuburn Univ, Dept Agr Econ & Rural Sociol, Auburn, AL 36849 USA
Hennessy, David A.
[2
,3
,4
]
Feng, Hongli
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机构:
Iowa State Univ, Dept Econ, Ames, IA USA
Michigan State Univ, Dept Agr Food & Resource Econ, E Lansing, MI 48824 USAAuburn Univ, Dept Agr Econ & Rural Sociol, Auburn, AL 36849 USA
Feng, Hongli
[3
,5
]
机构:
[1] Auburn Univ, Dept Agr Econ & Rural Sociol, Auburn, AL 36849 USA
[2] Michigan State Univ, Dept Agr Food & Resource Econ, Food & Agr Policy, E Lansing, MI 48824 USA
[3] Iowa State Univ, Dept Econ, Ames, IA USA
[4] Iowa State Univ, Ctr Agr & Rural Dev, Ames, IA USA
[5] Michigan State Univ, Dept Agr Food & Resource Econ, E Lansing, MI 48824 USA
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.