University of Illinois Urbana-Champaign

Impacts of crop insurance on cash rents

Nelson, Blaine S

Content Files
NELSON-THESIS-2017.pdf

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https://hdl.handle.net/2142/98413

Description

Title
Impacts of crop insurance on cash rents
Author(s)
Nelson, Blaine S
Issue Date
2017-07-19
Director of Research (if dissertation) or Advisor (if thesis)
Sherrick, Bruce J.
Committee Member(s)
  • Paulson, Nick
  • Kuethe, Todd
  • Baylis, Katherine
Department of Study
Agr & Consumer Economics
Discipline
Agricultural & Applied Econ
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
M.S.
Degree Level
Thesis
Date of Ingest
2017-09-29T17:57:00Z
Keyword(s)
  • Crop insurance
  • Cash rents
  • Farmland
  • Land value
Abstract
This study examines the degree to which net payments from federal crop insurance products impact cash rents paid for farmland. A spatial panel model is employed to control for spatial dependence and heterogeneity in cash rental rates. Results show that producers factor a statistically significant proportion of the value received from crop insurance into cash rents. However, the directly measurable rate is lower than found in previous studies. This result likely reflects the complexity in the relationship between losses and crop insurance rates, and the aggregation across producers in both measured rent and estimates of the net value of crop insurance to a producer. Further, the indirect effects of crop insurance and the ancillary impacts of a producer’s risk profile are difficult to identify independently due to the highly variable nature of crop insurance payments, and the smoothed nature of cash rental values. Nonetheless, even as the model removes much of the variation in the data, this analysis shows crop insurance is an important factor in a producer’s expected revenue, as cash rents are positively affected in counties that receive consistent and positive net value.
Graduation Semester
2017-08
Type of Resource
text
Permalink
http://hdl.handle.net/2142/98413
Copyright and License Information
Copyright 2017 Blaine Nelson

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Graduate Dissertations and Theses at Illinois PRIMARY
Graduate Theses and Dissertations at Illinois
Theses - Agricultural and Consumer Economics