The Stacked Income Protection Plan (STAX) county-level insurance product is analyzed for cotton producers in Texas. In contrast to studies based on representative farms, this analysis uses actual farm-level yield data, which allows one to observe the heterogeneity of STAX effectiveness across farms in a county. The findings indicate that, for most farms, STAX is not a very effective alternative to farm-level crop insurance. However, contrary to observed behavior, the findings suggest that many cotton producers in Texas would benefit from using STAX as a complement to their farm-level crop insurance.
|Number of pages||22|
|Journal||Applied Economic Perspectives and Policy|
|State||Published - Dec 2018|
Bibliographical noteFunding Information:
Yehouenou is a Ph.D. student in the Food and Resource Economics Department, University of Florida. Barry Barnett is a professor and Chair of the Department of Agricultural Economics, University of Kentucky. Ardian Harri and Keith Coble are, respectively, an associate professor, and the W.L. Giles Distinguished Professor and Head, Department of Agricultural Economics, Mississippi State University. This research was conducted while Yehouenou and Barnett were in the Department of Agricultural Economics at Mississippi State University. This research was supported by the Mississippi Agricultural Experiment Station. The authors also acknowledge support from the National Institute of Food and Agriculture, USDA, under Hatch project 603160. The views expressed here are not necessarily those of the USDA. Editor in charge of review: Chris McIntosh
© The Author(s) 2018. Published by Oxford University Press on behalf of the Agricultural and Applied Economics Association. All rights reserved.
- Crop insurance
- Revenue Protection
- Stacked Income Protection Plan
ASJC Scopus subject areas
- Economics and Econometrics