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U.S. Farm Safety Nets and the 2000 Agricultural Risk Protection Act
Author(s) -
Goodwin Barry K.
Publication year - 2001
Publication title -
canadian journal of agricultural economics/revue canadienne d'agroeconomie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 37
eISSN - 1744-7976
pISSN - 0008-3976
DOI - 10.1111/j.1744-7976.2001.tb00325.x
Subject(s) - safety net , subsidy , crop insurance , farm programs , revenue , business , payment , agriculture , agricultural policy , product (mathematics) , public economics , agricultural economics , economics , finance , political science , ecology , geometry , mathematics , law , market economy , biology
Although crop insurance programs have been an important part of U.S. agricultural policy since the 1930s, the “safety net” matra has taken on new relevance and importance in recent policy deliberations and rhetoric. This paper contains a non technical review of issues underlying the safety net concept in U.S. agricultural policy. We outline recent changes in U.S. crop insurance programs and review provisions of the 2000 Agricultural Risk Protection Act (ARPA), which had a significant impact on U.S. risk management programs by expanding crop and revenue insurance subsidies and stimulating new product development. A simple empirical analysis of how these changes may have affected program participation is considered. We then outline points relevant to 2002 Farm Bill deliberations. As is pointed out, the safety net concept seems pervasive to all policy discussions. Countercylical payments, even when provided on an ad hoc basis, may distort production and trade conditions.