Tack, Jesse

May, 2024

By: Biram, Hunter; Tack, Jesse; Nehring, Richard; Yu, Jisang
The potential for moral hazard is an unforeseen outcome of achieving the dual agricultural policy goals of income stabilization and limited environmental impact. Here, we review key issues for identifying the moral hazard effects of crop insurance on pesticide use and include an empirical application that addresses both insurance endogeneity and quality adjustment of pesticides over time. Our results reveal no consistent linkage between insurance and pesticide use across four major crops. We discuss the differences in these effects across different specifications and crops and conclude by stressing that caution be used when looking to the academic literature for guidance on this key policy question.

January, 2023

By: Barkley, Andrew; Seete, Paul; Tack, Jesse
The effects of changes in agricultural commodity prices on net farm income, land values, and the number of farm operators are quantified using a spatial equilibrium model for 798 Great Plains counties during 1997Ð2017, a period of historically large price changes. The empirical model identifies major features of the agricultural sector, including distance to market and agricultural commodity price movements. Regression results show that crop prices had significant impacts on agricultural outcomes. Volatility in net farm income and land values was greater in locations farthest from market centers for corn and soybeans, but closer to the defined sorghum market center.