@article{b57b7bbb03d2433eb8b779ad211ffa5b,
title = "Effects of the 2014 farm bill policies on cotton production",
abstract = "We develop a model for a representative risk-averse cotton farmer to analyze the impact of crop insurance policies (Revenue Protection [RP], Yield Protection, Stacked Income Protection Plan [STAX], and Supplemental Coverage Option [SCO]). The model is calibrated and numerically optimized to quantify the effects of different insurance policy combinations on input use (moral hazard), insurance coverage levels, premiums, and certainty equivalent. When the farmer elects only RP, the optimal coverage rate is 80%. Under RP and STAX, the optimal RP coverage rate is 70% and the STAX coverage rate is 90%. RP and STAX is the optimal policy combination based on certainty equivalents. The RP and SCO combination has the lowest impact of input use.",
keywords = "Cotton, RP, SCO, STAX, YP, crop insurance, moral hazard",
author = "Stephen Devadoss and Jeff Luckstead",
note = "Funding Information: DEVADOSS STEPHEN * LUCKSTEAD JEFF Department of Agricultural and Applied Economics , Texas Tech University , Lubbock , Texas Department of Agricultural Economics and Agribusiness , University of Arkansas , Fayetteville , Arkansas * Corresponding author's e-mail: stephen.devadoss@ttu.edu The project was supported by the Economic Research Service of the U.S. Department of Agriculture under the Cooperative Agreement, Project Number 58-3000-4-0029. 07 02 2018 05 2018 50 2 169 187 Copyright {\textcopyright} The Author(s) 2018 This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence ( http://creativecommons.org/licenses/by/4.0/ ), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited. 2018 The Author(s) This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence ( http://creativecommons.org/licenses/by/4.0/ ), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited. Publisher Copyright: {\textcopyright} The Author(s) 2018.",
year = "2018",
month = may,
day = "1",
doi = "10.1017/aae.2017.28",
language = "English",
volume = "50",
pages = "169--187",
journal = "Journal of Agricultural and Applied Economics",
issn = "1074-0708",
number = "2",
}