The Impact of Actuarial Pricing Errors on Planted Acreage

来源 :The 1st International Academic Conference for Graduate Stude | 被引量 : 0次 | 上传用户:chenhuiww060606
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  Agricultural policy in the United States has undergone significant structural changes with the introduction of the Federal Crop Insurance Program in 1980 and subsequent revisions.The program since inception has been plagued by a number of rating and product design issues.An important policy question is whether and to what degree mispriced and subsidized insurance impact producer planting decisions.We ask,what are the impacts of mispriced crop insurance,and perceived program costliness on a farmers propensity to plant? A spatial econometric approach is employed to investigate acreage decisions for Midwest corn.Other factors such as relative prices,price/cost indexes,land values,yield performance,climatology,soil quality,urbanization trends,and technology are also considered.
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