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Does subsidized crop insurance affect farm industry structure? Lessons from the U.S.
Journal of Policy Modeling ( IF 2.727 ) Pub Date : 2021-07-09 , DOI: 10.1016/j.jpolmod.2021.06.003
Azzeddine Azzam 1 , Cory Walters 2 , Taylor Kaus 3
Affiliation  

Farm policies have unintended consequences and subsidized crop insurance is no different. We draw on the theory of long-run competitive equilibrium to estimate the effect of subsidized crop insurance on farm output and number of farms in the U.S. Results show that the subsidy led to fewer and larger farms. To the extent that larger farms benefit disproportionately from other farm subsidies, known to increase farm size, subsidized crop insurance can only contribute to further farm consolidation, with consequences for sustainability and depopulation of rural communities. These unintended effects could make the case for reverting to ad-hoc disaster payment programs.



中文翻译:

补贴农作物保险是否影响农业产业结构?美国的教训

农业政策会产生意想不到的后果,补贴作物保险也不例外。我们利用长期竞争均衡理论来估计补贴作物保险对美国农场产量和农场数量的影响 结果表明补贴导致农场数量减少和增加。如果较大的农场从其他农场补贴中获得了不成比例的收益,已知会增加农场规模,补贴作物保险只会有助于进一步的农场整合,从而对农村社区的可持续性和人口减少产生影响。这些意想不到的影响可能成为恢复临时灾难支付计划的理由。

更新日期:2021-07-09
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