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The US crop insurance program and WTO disciplines

Author

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  • Joseph William Glauber

Abstract

Purpose - – The purpose of this paper is to examine the US crop insurance programs in the context of domestic support disciplines under the World Trade Organization (WTO). Crop insurance has become an integral part of many domestic support programs, not just in developed countries, but in important emerging markets as well. An often-cited impetus for the growth in insurance program is the potential treatment of such programs as exempt from WTO reduction commitments. Design/methodology/approach - – A detailed examination of the so-called “green box provisions” of the Uruguay Round Agreement on Agriculture is presented with particular emphasis on eligibility criteria for crop yield and revenue insurance programs. Findings - – While WTO rules potentially shield green box policies from reduction, few developed countries have notified agricultural insurance policies under Annex 2. Moreover, crop insurance programs have been challenged in recent WTO dispute settlement cases and domestic countervailing duty investigations. Originality/value - – The paper presents a unique perspective on a program which has become the largest single farm program in the USA.

Suggested Citation

  • Joseph William Glauber, 2016. "The US crop insurance program and WTO disciplines," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 76(1), pages 6-14, May.
    • Handle: RePEc:eme:afrpps:v:76:y:2016:i:1:p:6-14
    DOI: 10.1108/AFR-03-2016-0017
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    Citations

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    Cited by:

    1. Juan He & Xiaoyong Zheng & Roderick Rejesus & Jose Yorobe, 2020. "Input use under cost‐of‐production crop insurance: Theory and evidence," Agricultural Economics, International Association of Agricultural Economists, vol. 51(3), pages 343-357, May.
    2. Eric J Belasco & Joseph Cooper & Vincent H Smith, 2020. "The Development of a Weather‐based Crop Disaster Program," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(1), pages 240-258, January.
    3. Jianru Fu & Ruiyuan Shen & Chao Huang, 2023. "How does price insurance alleviate the fluctuation of agricultural product market? A dynamic analysis based on cobweb model," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(5), pages 202-211.
    4. Tao Li & Lihong Chen & Xiaoxu Li & Sha Li & Haibing Chen & Hao Ji, 2021. "The Impact of Cost-of-Production Insurance on Input Expense of Fruit Growing in Ecologically Vulnerable Areas: Evidence from Shaanxi Province of China," Sustainability, MDPI, vol. 13(21), pages 1-14, November.

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