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The Impacts of Pasture Insurance on Farmland Values

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  • Ifft, Jennifer
  • Wu, Shang
  • Kuethe, Todd H.

Abstract

This study examines the impact of publicly supported insurance on agricultural land values. The analysis employs confidential, nationally representative panel data on field-level pastureland values and exploits a natural experiment provided by gradual introduction of the Pasture, Rangeland, and Forage Insurance Pilot Program. We use a field-level fixed-effects model that controls for several time-variant factors. We find that insurance availability is associated with an increase of at least 4 percent in pastureland values. This increase is comparable with increases generated by other government programs but is much smaller than total farmland value increases experienced in recent years.
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Suggested Citation

  • Ifft, Jennifer & Wu, Shang & Kuethe, Todd H., 2012. "The Impacts of Pasture Insurance on Farmland Values," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124317, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea12:124317
    DOI: 10.22004/ag.econ.124317
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    Cited by:

    1. Callahan, Scott & Ifft, Jennifer & Michaud, Clayton P., 2022. "The impact of countercyclical farm programs on agricultural land values," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322579, Agricultural and Applied Economics Association.
    2. Ifft, Jennifer & Kuethe, Todd & Morehart, Mitch, 2015. "Does Federal Crop Insurance lead to higher farm debt use? Evidence from the Agricultural Resource Management Survey," Working Papers 250011, Cornell University, Department of Applied Economics and Management.
    3. Geoffroy Enjolras & Magali Aubert, 2018. "Does crop insurance lead to better environmental practices? Evidence from French farms," Post-Print hal-02048349, HAL.
    4. 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.
    5. Burns, Christopher & Tulman, Sarah & Harris, J. Michael, 2015. "Farm Financial Stress in a Changing Economic Environment: Simulating Credit Risk with New Imputed ARMS Data on Farm Debt," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205295, Agricultural and Applied Economics Association.
    6. Kuethe, Todd H. & Paulson, Nick, 2014. "Crop Insurance Use and Land Rental Agreements," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170528, Agricultural and Applied Economics Association.
    7. Ifft, Jennifer & Kuethe, Todd, 2014. "The Impacts of Insurance on Agricultural Land Values," farmdoc daily, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics, vol. 4, pages 1-2, December.
    8. Diersen, Matthew & Gurung, Pratik & Fausti, Scott, 2015. "Optimal Allocation of Index Insurance Intervals for Commodities," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196793, Southern Agricultural Economics Association.
    9. Brittney Goodrich & Jisang Yu & Monte Vandeveer, 2020. "Participation patterns of the rainfall index insurance for pasture, rangeland and forage programme," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 45(1), pages 29-51, January.
    10. Burns, Christopher & Key, Nigel & Tulman, Sarah & Borchers, Allison & Weber, Jeremy, 2018. "Farmland Values, Land Ownership, and Returns to Farmland, 2000-2016," Economic Research Report 276249, United States Department of Agriculture, Economic Research Service.
    11. Ifft, Jennifer & Jodlowski, Margaret, 2017. "Federal crop insurance and agricultural credit use," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259120, Agricultural and Applied Economics Association.

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    Keywords

    Agricultural and Food Policy; Agricultural Finance; Land Economics/Use; Risk and Uncertainty;
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