THE PREVENTED PLANTING (PP) PROVISION IN UNITED STATES (US) CROP INSURANCE IS INTENDED TO PROTECT PRODUCERS FROM FINANCIAL LOSSES WHEN THEY ARE UNABLE TO PLANT A CROP DUE TO NATURAL CAUSES. THE LAST TWO DECADES THERE HAS BEEN AN INCREASING AMOUNT OF PP PAYMENTS MADE ACROSS THE US. THIS RESULTED IN SEVERAL INVESTIGATIONS INTO PP CLAIMS, WHICH HAVE REVEALED THE PP PAYMENT STRUCTURE LIKELY OVERPAID PRODUCERS FOR LOSSES AND ENCOURAGES PRODUCERS TO LEAVE UNPLANTED LAND FALLOW. THESE INVESTIGATIONS RECOMMENDED CUTTING OR ELIMINATING THE PP COVERAGE FACTORS USED TO DETERMINE THE PP PAYMENT, AND RECENTLY, THERE HAVE BEEN A SLIGHT REDUCTION IN THE PP COVERAGE FACTOR FOR SEVERAL CROPS. HOWEVER, THESE INVESTIGATIONS SUGGEST FURTHER CHANGES COULD BE MADE TO IMPROVE ACCURACY OF THE COVERAGE FACTORS AND OVERALL EFFICIENCY OF THE PP PROVISION. WE PROPOSE A STUDY TO CALCULATE PP COVERAGE FACTORS AT THE COUNTY LEVEL FOR CORN AND SOYBEANS IN ARKANSAS, KENTUCKY, ILLINOIS, INDIANA, IOWA, LOUISIANA, MISSISSIPPI, MISSOURI, OHIO AND TENNESSEE THAT ACHIEVES SOME REVENUE MINIMUM OR RECOVERS PRE-PLANT COSTS AT VARIOUS ACROSS POLICY COVERAGE LEVELS. WE WILL EMPIRICALLY IDENTIFY REGIONAL OR SUB-STATE LEVEL PP COVERAGE FACTORS, AND WILL BE ABLE TO RECOMMEND ADJUSTMENTS TO PP COVERAGE FACTOR TO POLICYMAKERS THAT WILL ENCOURAGE PRODUCERS TO PLANT A SECONDARY CROP IN YEARS WHEN THEY WERE UNABLE TO PLANT THEIR PRIMARY CROP. THIS RESEARCH WILL ASSIST POLICYMAKERS IN FUTURE CROP INSURANCE MODIFICATIONS TO EFFICIENTLY INSURE RISK, REDUCE FEDERAL GOVERNMENT EXPENDITURES ON CROP INSURANCE, AND INCREASE AGRICULTURAL PRODUCTION.
$485,401FY2021National Institute of Food and AgricultureUSDA
University Of Tennessee, Memphis TN