A central, but inadequately explored issue with respect to subsidized crop insurance programs concerns the costs of delivering insurance coverage to farmers. This study examines that issue in the context of the heavily subsidized US crop insurance program which has often been put forward as a model for agricultural insurance programs in other countries. US Government programs often rely on private firms to deliver income transfers or services, which then establish their own rent-seeking lobbies, which are shared with input suppliers. This rent dispersion process is examined in the context of the U.S. agricultural insurance industry, which receives as much as one third of the annual subsidies that support the federal crop insurance program. We find that as total payments to insurance companies increased between 2001 and 2009, an increasingly large share of the agricultural insurance industry’s rents accrued to insurance agents, although in markets where insurance companies possessed some oligopsony power, agent payments are smaller. The findings also suggest that the insurance industry (companies and independent agents) would almost surely provide the same service for substantially less than the gross revenues from the subsidies and underwriting gains they received.

Agricultural Policy in Disarray provides fascinating, detailed, and contemporary evidence of how rent-seeking by small, well-organized interest groups results in government policies that do little good and much harm.

Over the past 25 years, economic growth rates in many developing countries have outpaced those in industrialized countries, and per capita incomes of these two groups of countries have started to converge. Growth in developing countries contributed to a dramatic drop—from 37 percent to 13 percent—in the global extreme poverty rate between 1990 and 201. However, the global economic outlook has deteriorated recently. This paper examines the impact of the actual and projected slowdown in the world economy since 2012 on the poor and on the potential for achievement of the Sustainable Development Goals (SDGs). It builds on the changes between 2012 and late 2015 in the International Monetary Fund’s World Economic Outlook projections to provide the basic slowdown scenario. It then uses a global model to assess the impacts of lower rates of productivity growth and consequent lower savings and investment on key price and income variables. The productivity shocks are passed directly to the production activities included in household microsimulation models for almost 300,000 households. These households are also affected by the modeled changes in prices and wages. Simulations allow us to assess the impacts of the slowdown on the real household incomes of the poor, and hence on the poverty rate. The results suggest that the poorest countries will see the greatest slowdown in poverty reduction, with over 5 percent of their population projected to remain below the poverty line. Overall 38 million fewer people will leave extreme poverty compared to earlier projections. Farm households are at particular risk in middle-income countries, with over 1.5 percent more of the farming population potentially not escaping extreme poverty in these countries. By 2030, average extreme poverty in rural areas is now projected to be about 7.5 percent, rather than 7.1 percent. While substantial poverty reduction is still expected between now and 2030, a strong focus on policies for poverty reduction will be vital to achieving the first SDG goal of eliminating poverty.

Rising prices and declining consumption of pulses cause concern in terms of both nutrition and food inflation in India. This paper outlines policy strategies to increase the availability of pulses at affordable prices in India and also points out limitations of some of the most common recommendations for achieving these objectives. There seems to be no option but to increase domestic production of pulses in India. The global supply of pulses is limited compared with India’s needs, and sizable imports by India are bound to increase world prices. Domestic production of pulses in India is most likely piecewise inelastic, meaning that small price increases do not translate into a significant supply response. Because farmers face both production and marketing risks, they increase pulse area and intensify production only when there is a large increase in expected prices that covers the risk premium. Droughts, too, are a major risk for pulses. Access to one or two protective irrigations during the growing season can possibly lead to sizable increases in pulse production and reduce the production risk. The har khet ko paani (assured irrigation) initiative under the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) program should give priority to pulse-producing areas. The minimum support price (MSP) for pulses, without direct government procurement, helps traders more than farmers because it acts as a focal point for tacit collusion among traders. Farmers will benefit from the MSP only if it is raised substantially from its current levels. The increase in farmgate prices due to a higher MSP will not necessarily lead to an increase in the retail price of pulses because much of the wedge between farmgate prices and consumer prices is traders’ margin. Including subsidized pulses in public distribution systems can save households some money, but it has only a small effect on total consumption of pulses and almost no effect on total protein intake. We suggest, as more potent solutions, investing in research and extension for pulses, aggregating pulse growers into farmer producer organizations, and paying pulse growers or pulse-growing areas for the ecosystem services offered by pulses.

Food safety is the most vital component of food security. One option to ensure food safety is through enhancing compliance at the farm level. This study investigates the status, estimates the cost, identifies the determinants, and assesses the impact of compliance with food safety measures in milk production in Nepal. The study is based on cross-section primary data collected at the farm level from six districts of Nepal. These districts are known for milk production and capture the geographical and institutional diversity of milk production in the country. The study shows that the status of compliance with food safety measures at the dairy farm level is not very encouraging. The intensity with which food safety practices are adopted shows wide inter- and intra-district variations. This intensity depicts a positive relationship to herd size. The additional cost of compliance with food milk safety measures reveals an inverse relationship with herd size. The factors associated with the adoption of food safety measures are caste, number of children and elderly people in a family, household labor size, herd size, access to information, inspection for conformity with the safety and quality standards in dairy farming, perception of households about food safety assistance provided by milk buyers, and market outlet types. We also provide evidence of the impact of food safety measures on farm-gate prices and farmers’ profitability.

This paper examines the development of US agricultural policy and considers how it has affected US consumers and producers, as well as how US programs affect foreign producers and consumers within the context of the United States’ obligations under the World Trade Organization. Throughout its history, the United States has supported the farm sector through a myriad of policies affecting prices, production, and farm incomes. Although many of the policies put in place during the New Deal legislation in the 1930s were seen as temporary at the time, most have persisted in one form or another to the present day. And while many would argue that the form and function of today’s agricultural programs are less distortionary than before, the level of support provided to the sector is several billion dollars annually.

The primary goal of the study is to investigate the potential to expand oilseeds, specifically soybeans,as an alternative commercialcrop to tobacco among Malawian farmers. A principal motivation for undertaking the study at the microeconomic level is to determine, in a theoretically consistent fashion, the type of policy and economic environment under which farmers begin to shift more of their scarce resources to oilseed production.The study aims to provide recommendations to a growing demand among policy makers and development partners for a greater diversification of exports and crop production systems of the majority smallholder farmers in Malawi. Using representative farm models, the study examinesthe potential for expanding production of soybeans among typical smallholder farming systems in Malawi. The results will help guide future policies and investments targeted at promoting greater crop diversification and incomes, in order to reduce poverty and malnutrition in Malawi. Given the amount of labor and land resources allocated to maize production for food security purposes, we also consider the policy challenges that emerge for crop diversification as a result