Chemical usage in production agriculture: Do crop insurance and off-farm work play a part?

Hung Hao Chang, Ashok K. Mishra

Research output: Contribution to journalArticle

10 Scopus citations

Abstract

In recent years a growing body of literature in the agricultural policy arena has examined the association between crop insurance and off-farm employment. However, little is known about the extent to which these two activities may be related to environmental quality, in particular their impacts on fertilizer/chemical use of the farm. To fill this gap, this paper examines the effect of crop insurance and off-farm work on fertilizer/chemical expenses within the farm household framework. Quantile regression results from a national representative farm-level data show that off-farm work by the farm operator tends to decrease fertilizer/chemical expenses, and the effect is more pronounced at the higher percentiles of the distribution of fertilizer/chemical expense. In contrast, a positive effect of crop insurance on fertilizer/chemical expenses is evident, and the effect is robust across the entire distribution.

Original languageEnglish (US)
Pages (from-to)76-82
Number of pages7
JournalJournal of Environmental Management
Volume105
DOIs
StatePublished - Aug 30 2012
Externally publishedYes

Keywords

  • Crop insurance
  • Farm household
  • Fertilizer/chemical expenses
  • Off-farm work
  • Quantile regression

ASJC Scopus subject areas

  • Environmental Engineering
  • Waste Management and Disposal
  • Management, Monitoring, Policy and Law

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