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Does Crop Insurance Affect Crop Yields?

Author

Listed:
  • Roberts, Michael J.
  • O'Donoghue, Erik J.
  • Key, Nigel D.

Abstract

We use administrative data from the Federal crop insurance program to examine how yield distributions change as farmers cycle into and out of the program. We are able to do this by linking many years of crop insurance data by individual farm conditioning observed yields on the particular county and year in which they are observed. Armed with millions of observations, we examine many states and five major crops: corn, soybeans, wheat, rice and cotton. We find little evidence that yield distributions are affected by insurance. An exception is rice in Arkansas, where insurance shifts the distribution markedly downward.

Suggested Citation

  • Roberts, Michael J. & O'Donoghue, Erik J. & Key, Nigel D., 2007. "Does Crop Insurance Affect Crop Yields?," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9828, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea07:9828
    DOI: 10.22004/ag.econ.9828
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    Cited by:

    1. Farrin, Kathleen M. & Miranda, Mario J., 2013. "Premium Benefits? A Heterogeneous Agent Model of Credit-Linked Index Insurance and Farm Technology Adoption," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149666, Agricultural and Applied Economics Association.

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