This article examines the effect of price hedging on publicly subsidized insurance. Theoretically, the effect of hedging is found to have an ambiguous effect on the incentive to purchase revenue insurance. A simulation is used to analyze the relationship between hedging and the Canadian AgriStability program in three regions in Saskatchewan. AgriStability is a margin insurance product, though in the simulation I hold input use constant, allowing the program to operate as if it were revenue insurance. Hedging is found to substantially reduce enrolment in AgriStability in each region. Furthermore, in some simulations the benefits that producers receive from AgriStability are smaller than the value of government subsidies. The results offer an explanation for low participation in AgriStability and show that the risk-reducing effect of AgriStability is moderated by the ability of crop producers to hedge price risk through other means.

中文翻译：

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价格对冲对补贴保险的影响：来自加拿大的证据

本文研究了价格对冲对公共补贴保险的影响。从理论上讲，套期保值效应对购买收入保险的激励具有模棱两可的影响。使用模拟分析萨斯喀彻温省三个地区的套期保值与加拿大农业稳定计划之间的关系。AgriStability 是一种保证金保险产品，尽管在模拟中我保持输入使用不变，允许程序像收入保险一样运行。发现对冲会大大减少每个地区的 AgriStability 入学率。此外，在某些模拟中，生产者从 AgriStability 获得的收益小于政府补贴的价值。