Farm Revenue Assurance or Income Insurance?
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Publisher:Ohio State University. Department of Agricultural, Environmental, and Development Economics
Series/Report no.:Ohio State University. Department of Agricultural Economics and Rural Sociology. ESO (Economics and Sociology Occasional Paper). No. 2132
Farm revenue insurance has public appeal as a potential means to reduce annual variation in farm income while also reducing the cost of commodity programs. For some time, economists have been attracted to the idea of farm revenue insurance as a policy instrument addressing farm economic instability. Public enthusiasm for the idea intensified after endorsement by the Iowa 1995 Farm Bill Study Team. The broad appeal of the proposal was apparent: it had the support of 11 organizations ranging in philosophy from the Iowa Farm Bureau to the National Farmers Organization. This paper lists advantages and disadvantages of revenue insurance. Preliminary empirical analysis suggests how that program may affect farm income associated with various crops and regions. We conclude with a proposal to make revenue insurance workable as an income insurance program administered through the federal income tax.
Exact date of working paper unknown.