Mississippi State University
Barnett, Barry J.
Coble, Keith H.
Date of Degree
Graduate Thesis - Open Access
Master of Science
College of Agriculture and Life Sciences
Department of Agricultural Economics
The STAX and SCO shallow loss crop insurance products were introduced in the 2014 farm bill. This research investigates the farm-level performance of STAX for cotton growers. Using 10 years of actual farm yield data for the period 1999 to 2008, certainty equivalent gains were evaluated under four treatments in Texas, Mississippi and Louisiana for non-irrigated and irrigated cotton production. Following the current practice for STAX, county yield is estimated using yield data from YP, RP, and RP-HPE policies rather than NASS county level yield data. Findings show that, assuming actuariallyair premiums, certainty equivalent gains for RP tend to be higher than for STAX. But with subsidized premiums, the opposite outcome sometimes occurs. Furthermore, with subsidized premiums the findings indicate that almost all farms would benefit from purchasing STAX as a complement to RP. The use of actual farm yield data highlights the heterogeneity of STAX farm-level impacts.
Yehouenou, Lauriane Senade Massan, "An Analysis of Farm-Level Performance of Shallow Loss Products based on Aggregated Farm Yields Case Study of the Stacked Income Protection Plan (STAX)" (2016). Theses and Dissertations. 457.