IDEAS home Printed from https://ideas.repec.org/p/ags/uersib/340216.html
   My bibliography  Save this paper

Federal Programs for Agricultural Risk Management

Author

Listed:
  • Turner, Dylan
  • Tsiboe, Francis
  • Baldwin, Katherine
  • Williams, Brian
  • Dohlman, Erik
  • Astill, Gregory
  • Skorbiansky, Sharon Raszap
  • Abadam, Vidalina
  • Yeh, D. Adeline
  • Knight, Russell

Abstract

This report provides a broad overview of the Federal programs that are designed to help agricultural producers manage risks to income or profitability caused by natural and economic forces. This report refers to these programs as “risk management programs.” Focus is given to risk management programs that are available under the Agriculture Improvement Act of 2018 (i.e., 2018 Farm Bill). Thus, this publication serves as an update to previous work (Motamed et al., 2018), which focused on programs available under the Agricultural Act of 2014 (i.e., 2014 Farm Bill). Although each title of the Farm Bill contains programs that attenuate risk indirectly, most current targeted risk management programs are authorized under Title I: Commodity Programs or Title XI: Crop Insurance. Accordingly, this report primarily focuses on programs for crop and livestock producers that are available under these two titles. Available policies for managing production and price risk are discussed with recent trends in program enrollment and outlays provided.

Suggested Citation

  • Turner, Dylan & Tsiboe, Francis & Baldwin, Katherine & Williams, Brian & Dohlman, Erik & Astill, Gregory & Skorbiansky, Sharon Raszap & Abadam, Vidalina & Yeh, D. Adeline & Knight, Russell, 2023. "Federal Programs for Agricultural Risk Management," Economic Information Bulletin 340216, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersib:340216
    DOI: 10.22004/ag.econ.340216
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/340216/files/eib-259.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.340216?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. O'Donoghue, Erik J. & Hungerford, Ashley E. & Cooper, Joseph C. & Worth, Thomas & Ash, Mark, 2016. "The 2014 Farm Act Agriculture Risk Coverage, Price Loss Coverage, and Supplemental Coverage Option Programs' Effects on Crop Revenue," Economic Research Report 262201, United States Department of Agriculture, Economic Research Service.
    2. Selasco, Eric J. & Hungerford, Ashley E., 2018. "Examining the Design and Use of the Pasture, Rangeland, Forage (PRF) Program," Western Economics Forum, Western Agricultural Economics Association, vol. 16(2), December.
    3. Bigelow, Daniel & Borchers, Allison, 2017. "Major Uses of Land in the United States, 2012," Economic Information Bulletin 263079, United States Department of Agriculture, Economic Research Service.
    4. Whitt, Christine & Todd, Jessica E. & Keller, Andrew, 2021. "America's Diverse Family Farms: 2021 Edition," USDA Miscellaneous 316499, United States Department of Agriculture.
    5. Skorbiansky, Sharon Raszap & Astill, Gregory & Rosch, Stephanie & Higgins, Elizabeth & Ifft, Jennifer & Rickard, Bradley, 2022. "Specialty Crop Participation in Federal Risk Management Programs," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, vol. 2022(Economic ), September.
    6. James B. Keller & Tina L. Saitone, 2022. "Basis risk in the pasture, rangeland, and forage insurance program: Evidence from California," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(4), pages 1203-1223, August.
    7. Skorbiansky, Sharon Raszap & Astill, Gregory & Rosch, Stephanie & Higgins, Elizabeth & Ifft, Jennifer & Rickard, Bradley, 2022. "Specialty Crop Participation in Federal Risk Management Programs," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, vol. 2022(Economic ), September.
    8. Hungerford, Ashley & O'Donoghue, Erik, 2016. "Federal Crop Insurance Options for Upland Cotton Farmers and Their Revenue Effects," Economic Research Report 249774, United States Department of Agriculture, Economic Research Service.
    9. Boussios, David & O’Donoghue, Erik J., 2019. "Potential Variability in Commodity Support: Agriculture Risk Coverage and Price Loss Coverage Programs," Economic Research Report 335302, United States Department of Agriculture, Economic Research Service.
    10. Hungerford, Ashley & Astill, Gregory & Effland, Anne, 2017. "Changes to the Noninsured Crop Disaster Assistance Program Under the Agricultural Act of 2014: Their Potential Risk Reduction Impacts," Economic Information Bulletin 262132, United States Department of Agriculture, Economic Research Service.
    11. Shenan Wu & Barry K. Goodwin & Keith Coble, 2020. "Moral hazard and subsidized crop insurance," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 131-142, January.
    12. Mark, Tyler B. & Burdine, Kenneth H. & Cessna, Jerry & Dohlman, Erik, 2016. "The Effects of the Margin Protection Program for Dairy Producers," Economic Research Report 262192, United States Department of Agriculture, Economic Research Service.
    13. Prager, Daniel & Burns, Christopher & Tulman, Sarah & MacDonald, James, 2020. "Farm Use of Futures, Options, and Marketing Contracts," Agricultural Economic Reports 305690, United States Department of Agriculture, Economic Research Service.
    14. Ghada Elabed & Marc F. Bellemare & Michael R. Carter & Catherine Guirkinger, 2013. "Managing basis risk with multiscale index insurance," Agricultural Economics, International Association of Agricultural Economists, vol. 44(4-5), pages 419-431, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Baldwin, Katherine & Turner, Dylan & Tsiboe, Francis, 2024. "Recent Developments in Ad Hoc Assistance Programs for Agricultural Producers," Economic Information Bulletin 347201, United States Department of Agriculture, Economic Research Service.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Motamed, Mesbah & Hungerford, Ashley & Rosch, Stephanie & O’Donoghue, Erik & MacLachlan, Matthew & Astill, Gregory & Cessna, Jerry & Joseph Cooper, 2018. "Federal Risk Management Tools for Agricultural Producers: An Overview," Economic Research Report 276229, United States Department of Agriculture, Economic Research Service.
    2. Beckman, Jayson & Dyck, John & Heerman, Kari, 2017. "The Global Landscape of Agricultural Trade, 1995-2014," Economic Information Bulletin 265270, United States Department of Agriculture, Economic Research Service.
    3. Cai, Xiaowei & Volpe, Richard & Barraza, Fernando, 2024. "Farmland Values in California: Pre- and Post-COVID-19 Perspectives," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2024, January.
    4. Simon Maina & Maryfrances Miller & Gregory L. Torell & Niall Hanan & Julius Anchang & Njoki Kahiu, 2024. "Index Insurance for Forage, Pasture, and Rangeland: A Review of Developed (USA and Canada) and Developing (Kenya and Ethiopia) Countries," Sustainability, MDPI, vol. 16(9), pages 1-23, April.
    5. Baldwin, Katherine & Turner, Dylan & Tsiboe, Francis, 2024. "Recent Developments in Ad Hoc Assistance Programs for Agricultural Producers," Economic Information Bulletin 347201, United States Department of Agriculture, Economic Research Service.
    6. Richard KOENIG & Marielle BRUNETTE, 2023. "Climate change perception, impact and adaptation: Implications for crop insurance," Working Papers of BETA 2023-36, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    7. Michael R. CARTER & Alain de JANVRY & Elisabeth SADOULET & Alexandros SARRIS, 2014. "Index-based weather insurance for developing countries: A review of evidence and a set of propositions for up-scaling," Working Papers P111, FERDI.
    8. Sebastian K. Stankiewicz & Rafael Auras & Susan Selke, 2019. "Modeling American Household Fluid Milk Consumption and their Resulting Greenhouse Gas Emissions," Sustainability, MDPI, vol. 11(7), pages 1-16, April.
    9. Durant, Jennie L. & Asprooth, Lauren & Galt, Ryan E. & Schmulevich, Sasha Pesci & Manser, Gwyneth M. & Pinzón, Natalia, 2023. "Farm resilience during the COVID-19 pandemic: The case of California direct market farmers," Agricultural Systems, Elsevier, vol. 204(C).
    10. Catherine Brinkley & Marjory Anne Visser, 2022. "Socioeconomic and Environmental Indicators for Rural Communities: Bridging the Scholarly and Practice Gap," Economic Development Quarterly, , vol. 36(2), pages 75-91, May.
    11. James B. Keller & Tina L. Saitone, 2022. "Basis risk in the pasture, rangeland, and forage insurance program: Evidence from California," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(4), pages 1203-1223, August.
    12. Maguire, Karen & Tanner, Sophia J. & Winikoff, Justin B. & Williams, Ryan, 2024. "Utility-Scale Solar and Wind Development in Rural Areas: Land Cover Change (2009–20)," Economic Research Report 343476, United States Department of Agriculture, Economic Research Service.
    13. Utesov, Nurlan & Mitchell, Paul D. & Du, Xiaodong, 2024. "Product Differentiation and Equilibrium Transition: Local premium quality foods and marketing contracts in the Wisconsin fresh potato market," 2024 Annual Meeting, July 28-30, New Orleans, LA 343964, Agricultural and Applied Economics Association.
    14. repec:ags:aaea22:335430 is not listed on IDEAS
    15. Vilhelm, V. & Špička, J. & Valder, A., 2015. "Public Support of Agricultural Risk Management – Situation and Prospects," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 7(2), pages 1-10, June.
    16. Erwin Bulte & Rein Haagsma, 2021. "The Welfare Effects of Index-Based Livestock Insurance: Livestock Herding on Communal Lands," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 78(4), pages 587-613, April.
    17. Nathan P. Hendricks, 2022. "Would farmers benefit from removing more land from production in the next farm bill?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(3), pages 1139-1157, September.
    18. Morsink,Karlijn & Clarke,Daniel Jonathan & Mapfumo,Shadreck, 2016. "How to measure whether index insurance provides reliable protection," Policy Research Working Paper Series 7744, The World Bank.
    19. Subedi, Dipak & Giri, Anil K., 2024. "Debt Use by U.S. Farm Businesses, 2012–2021," Economic Information Bulletin 344131, United States Department of Agriculture, Economic Research Service.
    20. Sinabell, Franz & Url, Thomas & Heinschink, Karin, 2017. "Margin Insurance In Agriculture – A Micro Simulation Approach Of Wheat And Hog Production In Austria," 57th Annual Conference, Weihenstephan, Germany, September 13-15, 2017 262154, German Association of Agricultural Economists (GEWISOLA).
    21. Quentin Stoeffler & Michael Carter & Catherine Guirkinger & Wouter Gelade, 2022. "The Spillover Impact of Index Insurance on Agricultural Investment by Cotton Farmers in Burkina Faso," The World Bank Economic Review, World Bank, vol. 36(1), pages 114-140.

    More about this item

    Keywords

    Agricultural and Food Policy; Agricultural Finance; Crop Production/Industries; Livestock Production/Industries; Risk and Uncertainty;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uersib:340216. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ersgvus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.