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Crop Insurance as a Mechanism for Reducing Pesticide Usage: A Representative Farm Analysis

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  • Eli Feinerman
  • Joseph A. Herriges
  • Derald Holtkamp

Abstract

Crop insurance provides a potential tool for reducing agricultural chemical use by providing a substitute for the risk management benefits of pesticides. This article describes the results obtained from an integrated modeling system developed to assess the efficacy of crop insurance used in this manner. While crop insurance is found to reduce pesticide application, the extent of its impact depends significantly upon the distribution of risk aversion in the target population and the reductions can be costly, ranging from $25 to $45 per pound of active ingredient.

Suggested Citation

  • Eli Feinerman & Joseph A. Herriges & Derald Holtkamp, 1992. "Crop Insurance as a Mechanism for Reducing Pesticide Usage: A Representative Farm Analysis," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 14(2), pages 169-186.
    • Handle: RePEc:oup:revage:v:14:y:1992:i:2:p:169-186.
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    File URL: http://hdl.handle.net/10.2307/1349498
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    Cited by:

    1. Chu, Mei-Chin & Swinton, Scott M. & Batie, Sandra S., 1997. "A Risk Programming Approach To Designing Contracts To Reduce Nitrate Leaching," Staff Paper Series 11594, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Geoffroy Enjolras & Magali Aubert, 2020. "How does crop insurance influence pesticide use? Evidence from French farms," Review of Agricultural, Food and Environmental Studies, Springer, vol. 101(4), pages 461-485, December.
    3. Aubert, Magali & Enjolras, Geoffroy, 2014. "Between the approved and the actual dose. A diagnosis of pesticide overdosing in French vineyards," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 95(3).
    4. Swinton, Scott M. & Day, Esther, 2000. "Economics In The Design, Assessment, Adoption, And Policy Analysis Of I.P.M," Staff Paper Series 11789, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. Magali Aubert & Geoffroy Enjolras, 2012. "Quand le surdosage devient la norme : un diagnostic des exploitations viticoles françaises," Post-Print hal-02749128, HAL.
    6. Lybbert, Travis J. & Magnan, Nicholas & Gubler, W. Douglas, 2012. "Multi-Dimensional Responses to Risk Information: How do Winegrape Growers Respond to Disease Forecasts and to What Environmental Effect?," Working Papers 162521, Robert Mondavi Institute Center for Wine Economics.
    7. Aubert, M. & Enjolras, G., 2018. "Does crop insurance lead to better environmental practices? Evidence from French farms," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277242, International Association of Agricultural Economists.
    8. Möhring, Niklas & Dalhaus, Tobias & Enjolras, Geoffroy & Finger, Robert, 2020. "Crop insurance and pesticide use in European agriculture," Agricultural Systems, Elsevier, vol. 184(C).
    9. Lybbert, Travis J. & Magnan, Nicholas & Gubler, W. Douglas, 2010. "Powdery Mildew Risk And Forecasting In Wine Grapes: Do Growers Change Risk Management Strategies In Response To Disease Forecasts?," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61745, Agricultural and Applied Economics Association.

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