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The sector‐level safety net provided by the current mix of farm programs

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  • Patrick Westhoff
  • Marc Rosenbohm
  • Youngjune Kim
  • Benjamin Brown

Abstract

Current farm policy includes a diverse set of programs intended to provide a financial safety net for producers of grains, oilseeds, and cotton. These programs make payments contingent on national market prices and yields at the farm or county level. A review of data for the 2014–2020 period demonstrates the successes and limitations of crop insurance, agriculture risk coverage and price loss coverage at offsetting reductions in national net market revenues for particular crops. Forward‐looking stochastic analysis confirms these programs protect against different types of risks but provide support levels that can vary greatly across commodities and time.

Suggested Citation

  • Patrick Westhoff & Marc Rosenbohm & Youngjune Kim & Benjamin Brown, 2022. "The sector‐level safety net provided by the current mix of farm programs," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(3), pages 1204-1221, September.
    • Handle: RePEc:wly:apecpp:v:44:y:2022:i:3:p:1204-1221
    DOI: 10.1002/aepp.13273
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