A New Season?
8 Pages Posted: 20 Jan 2007
Federal crop insurance began in 1938 as a focused program to correct certain perceived market failures. It has transformed into a massive wealth transfer scheme that is frequently the subject of supposed legislative reforms. Yet each wave of changes has, for the most part, moved the program further away from economic rationality and exacerbated its distortion of incentives and inefficiency.
Keywords: A New Season, Robert W. Klein, Gregory Krohm, 2007 farm bill, farm subsidies, FCIC, risk management tools, government intervention, federal crop insurance, multiple peril policy, incentives, public welfare benefits, privatization
JEL Classification: D40, D78, E61, G18, H53, I38, J43,
Suggested Citation: Suggested Citation