Transfer efficiency analysis of margin-based programs.

摘要

AgriStability, Canada's major farm support and business risk management programme, has been in place since 2007. As with most agricultural insurance programmes, AgriStability creates opposing incentives where moral hazard and misallocation effects discourage production, while the risk reduction effects encourage production. We investigate the relative size of these effects to determine both the degree to which production is distorted and the percentage of government transfer that remains with the producer. Our results indicate mild but differential effects across crops. We find roughly 45% of programme payments remain with primary producers. These findings are of particular interest because of their World Trade Organization implications.