Agricultural Economics Department

 

First Advisor

Azzeddine Azzam

Second Advisor

Cory Walters

Date of this Version

4-2019

Document Type

Thesis

Citation

A thesis presented to the faculty of the Graduate College at the University of Nebraska in partial fulfillment of requirements for the degree of Master of Science

Major: Agricultural Economics

Under the supervision of Professors Azzeddine Azzam and Cory Walters

Lincoln, Nebraska, April 2019

Comments

Copyright 2019, Taylor T. Kaus

Abstract

Previous research has found a positive and significant planted acreage response to the participation in, and increases in the premium subsidization of, the federal crop insurance program. However, no research to our knowledge has evaluated what influence the response in planted acreage and crop choice to subsidized crop insurance has had on market industry in terms of farm numbers and average farm output. To address this issue, we utilize the theory of long-run competitive equilibrium with subsidized crop insurance to generate a conceptual model with econometrically testable hypotheses. Testing the econometric model in two distinct regions of the U.S, we find the premium subsidy regime change in the federal crop insurance program associated with the Agricultural Risk Protection Act of 2000 has contributed to fewer farms and larger average farm output across over 600 counties in two distinct regions in the U.S.

Advisors: Azzeddine Azzam and Cory Walters

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