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Examining Contemporaneous Farm and County Losses Using Farm Level Data

Author

Listed:
  • Zulauf, Carl R.
  • Demircan, Vecdi
  • Scnhitkey, Gary
  • Barnaby, Glenn Arthur, Jr.
  • Ibendahl, Gregg
  • Herbel, Kevin
Abstract
Characteristics of farm level yield and revenue loss that is systemic with yield and revenue loss at the county, state, and U.S. level are examined using farm yields from the Illinois and Kansas farm business management associations. The data begins with 1972. Share of yield and revenue loss systemic with the larger geographical areas declines as the level of loss increases, implying a greater share of larger losses is idiosyncratic to an individual farm. Farm loss systemic with the county generally is larger for Kansas than Illinois farms, which calls into question that county-based programs are less effective for plain states due to the larger size of their counties. Last, for the small set of farms that yields for a crop for all years of the analysis, the correlation between a farm and county yield/revenue deviations had limited ability to explain the share of a farm’s loss that is systemic with a county. This finding suggests that only by examining loss experiences for the farm and the county can the value of county risk management programs be ascertained.

Suggested Citation

  • Zulauf, Carl R. & Demircan, Vecdi & Scnhitkey, Gary & Barnaby, Glenn Arthur, Jr. & Ibendahl, Gregg & Herbel, Kevin, 2013. "Examining Contemporaneous Farm and County Losses Using Farm Level Data," 2013 AAEA: Crop Insurance and the Farm Bill Symposium 157812, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaeaci:157812
    DOI: 10.22004/ag.econ.157812
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    File URL: https://ageconsearch.umn.edu/record/157812/files/Systemic%20Loss%20Analysis.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Lim, Jinsoon & Kim, Sanghyo & Zulauf, Carl, 2015. "What Explains the Share of Farm Loss Systemic with County Loss?," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205804, Agricultural and Applied Economics Association.
    2. Feng, Siyi & Patton, Myles & Binfield, Julian C.R. & Davis, John, 2014. "Assessing the costs of risk management tools: A crop insurance scenario based on a stochastic partial equilibrium model approach," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 170538, Agricultural Economics Society.
    3. Zulauf, Carl R. & Orden, David, 2014. "Assessing the Political Economy of the 2014 U.S. Farm Bill," 2014: Food, Resources and Conflict, December 7-9, 2014. San Diego, California 197160, International Agricultural Trade Research Consortium.
    4. David Orden & Carl Zulauf, 2015. "Political Economy of the 2014 Farm Bill," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(5), pages 1298-1311.
    5. Zulauf, Carl & Orden, David, 2014. "The US Agricultural Act of 2014: Overview and analysis:," IFPRI discussion papers 1393, International Food Policy Research Institute (IFPRI).

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    Keywords

    Agricultural and Food Policy; Risk and Uncertainty;

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