Effects of the 2014 farm bill policies on cotton production

dc.creatorDevadoss, Stephen (TTU)
dc.creatorLuckstead, Jeff
dc.date.accessioned2023-04-07T18:50:01Z
dc.date.available2023-04-07T18:50:01Z
dc.date.issued2018
dc.description© The Author(s) 2018. cc-by-nc-nd
dc.description.abstractWe develop a model for a representative risk-averse cotton farmer to analyze the impact of crop insurance policies (Revenue Protection [RP], Yield Protection, Stacked Income Protection Plan [STAX], and Supplemental Coverage Option [SCO]). The model is calibrated and numerically optimized to quantify the effects of different insurance policy combinations on input use (moral hazard), insurance coverage levels, premiums, and certainty equivalent. When the farmer elects only RP, the optimal coverage rate is 80%. Under RP and STAX, the optimal RP coverage rate is 70% and the STAX coverage rate is 90%. RP and STAX is the optimal policy combination based on certainty equivalents. The RP and SCO combination has the lowest impact of input use.
dc.identifier.citationDevadoss, S., & Luckstead, J.. 2018. Effects of the 2014 farm bill policies on cotton production. Journal of Agricultural and Applied Economics, 50(2). https://doi.org/10.1017/aae.2017.28
dc.identifier.urihttps://doi.org/10.1017/aae.2017.28
dc.identifier.urihttps://hdl.handle.net/2346/92632
dc.language.isoeng
dc.subjectCotton
dc.subjectcrop insurance
dc.subjectmoral hazard
dc.subjectRP
dc.subjectSCO
dc.subjectSTAX
dc.subjectYP
dc.titleEffects of the 2014 farm bill policies on cotton production
dc.typeArticle

Files

Original bundle

Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
Main article with TTU Libraries cover page.pdf
Size:
404.07 KB
Format:
Adobe Portable Document Format

Collections