Date of Award:


Document Type:


Degree Name:

Master of Science (MS)


Applied Economics

Committee Chair(s)

Man-Keun Kim


Man-Keun Kim


Tanner McCarty


Anastasia Thayer Hassett


The Federal Crop Insurance Program (FCIP) has played a pivotal role in agricultural businesses and communities. The FCIP allows farmers to purchase farm and farm-related products and services, maintain heavy agricultural machinery, and utilize farm agency services for preparing for farming in the following agricultural years. In addition, the indemnities enable farmers to repay debts, alleviate farm collapses, and keep farm industries purchasing agricultural-related products and the necessary goods for everyday living, stabilizing the local and farming economies (Lubben & Thompson, 2013).

This study investigates the economic contribution of crop indemnity payments using a methodology that will capture the total economic contribution including of the direct and induced effects. The direct effect is the net crop indemnities to farmers from the federal government. The subsequent ripple effect (induced) is the additional effects, positively affecting non-farming industries beyond the farm gate. The total economic contribution, including the direct and induced effects was $1, $4, $9, $17, and $11 billion from 2016 to 2020, respectively.

Included in

Economics Commons