Get a GRIP: Should Area Revenue Coverage Be Offered Through the Farm Bill or as a Crop Insurance Program?

The successful expansion of the U.S. crop insurance program has not eliminated ad hoc disaster assistance. An alternative currently being explored by Congress in preparation of the 2008 farm bill is a standing disaster relief program. One form such a program could take can be found in the area insur...

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Bibliographic Details
Published inJournal of Agricultural and Resource Economics Vol. 33; no. 2; pp. 137 - 153
Main Authors Paulson, Nicholas D., Babcock, Bruce A.
Format Journal Article
LanguageEnglish
Published Logan Western Agricultural Economics Association 01.08.2008
Edition1835
Subjects
Adverse selection
Agricultural and Food Policy
Agricultural Finance
Agricultural production
Area insurance
Commodities
Commodity programs
Cost estimates
Costs
Crop economics
Crop insurance
Crops
Farm bill
Group insurance
Group Risk Income Protection
Harvest
Insurance coverage
Insurance industry
Insurance premiums
Insurance underwriting
Moral hazard
Revenue
Soybeans
Subsidies
Tax costs
Taxpaying
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Summary:The successful expansion of the U.S. crop insurance program has not eliminated ad hoc disaster assistance. An alternative currently being explored by Congress in preparation of the 2008 farm bill is a standing disaster relief program. One form such a program could take can be found in the area insurance programs currently offered by the U.S. crop insurance program. Total per acre taxpayer costs of offering Group Risk Income Protection (GRIP) in Indiana, Illinois, and Iowa for corn and soybeans are estimated to have the ability to fund a county target revenue program at the 93% coverage level.
ISSN:1068-5502
2327-8285
DOI:10.22004/ag.econ.42458