The impact of crop insurance participation on farmers' use of marketing contracts

Marketing Contract;Crop Insurance;Impact;Endogeneity;Instrument

Li, Li ; Kirwan ; Barrett E.

关键词: Marketing Contract;    Crop Insurance;    Impact;    Endogeneity;    Instrument;   

Others  :  https://www.ideals.illinois.edu/bitstream/handle/2142/45571/Li_Li.pdf?sequence=1&isAllowed=y

美国|英语

来源: The Illinois Digital Environment for Access to Learning and Scholarship

【 摘 要 】

This thesis investigates the impact of crop insurance participation on farmers’ use of marketing contracts. Both the decisions of adopting a marketing contract and the quantity placed under contract are examined. A preliminary estimation is first performed using the OLS approach. To address the potential endogeneity problem of crop insurance participation, an instrumental variable is introduced and a 2SLS approach is employed to conduct a farm-level analysis. Results suggest a negative impact of crop insurance participation on marketing contract adoption, while the fraction of production contracted is positively affected by the participation in crop insurance.