Author

Hee Seong Kim

Document Type

Thesis - Open Access

Award Date

1990

Degree Name

Master of Science (MS)

Department

Economics

First Advisor

Gerald Toland, Jr.

Abstract

Justification Congress hoped to improve farm income stability when the FCIC and its FCI program were initially established in 1938 (Halcrow 1978). By 1948, Congress had scaled back its · intentions of having FCI serve as a major farm program. FCI was Congressionally restrained to be an experimental program during the years 1948 - 1980 (Kramer 1983). New interest in FCI's potential as a policy tool and research area was created when the FCI Act of 1980 became law. The FCI Act was legislated by Congress to expand and improve FCI's role as an agricultural disaster management program (U.S. Congress 1980). Legislators, FCIC administrators and private crop insurers who supported the FCI Act were among the groups interested in research on alternative premium and coverage plans that could increase overall MPCI use by producers. Congressional disillusionment with the MPCI program occurred after the FCI Act was implemented because producer participation fell below expectations and program costs soared above projections. Hypothesis The primary hypothesis in this simulation model of a dual crop farm was: Assuming a given risk attitude, a producer would purchase crop insurance more frequently without farm program participation as compared to participation in the farm program. A competitive relationship is expected between farm program participation and the MPCI purchase. Illustrative testable hypotheses are that as the deficiency payment levels decrease and/or set-aside acreage rates increase, the MPCI participation rate would increase.

Library of Congress Subject Headings

Agricultural administration -- South Dakota
Farm risks
Agricultural subsidies
Crop insurance

Format

application/pdf

Number of Pages

180

Publisher

South Dakota State University

Included in

Economics Commons

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