Journal Article

Crop Insurance, Acreage Decisions, and Nonpoint-Source Pollution

JunJie Wu

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 81, issue 2, pages 305-320
Published in print May 1999 | ISSN: 0002-9092
Published online May 1999 | e-ISSN: 1467-8276 | DOI: https://dx.doi.org/10.2307/1244583
Crop Insurance, Acreage Decisions, and Nonpoint-Source Pollution

More Like This

Show all results sharing these subjects:

  • Renewable Resources and Conservation
  • Agricultural Economics

GO

Show Summary Details

Preview

The redirection of farm policy in the 1996 farm bill has generated much interest in seeking environmentally friendly and economically viable ways to protect farm income. Agricultural insurance has been suggested as such an instrument. This article estimates the effect of crop insurance on crop mix and the resulting change in chemical use in the Central Nebraska Basin. Providing corn insurance will shift land from hay and pasture to corn, which will increase chemical use at the extensive margin. This extensive-margin effect dominates the effect of crop insurance on the application rate, leading to an increase in total chemical use.

Keywords: acreage decisions; chemical use; crop insurance; nonpoint pollution; Q120; Q140; Q180; Q210

Journal Article.  0 words. 

Subjects: Renewable Resources and Conservation ; Agricultural Economics

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.