Author: Publisher:
ISBN:
Category : Crop insurance
Languages : en
Pages : 8
Book Description
Individual Yield Coverage
Author: Individual Yield Coverage
Author: Federal Crop Insurance
Author: Individual Crop Insurance
Author: Hunter D. BiramPublisher:
ISBN:
Category : Crop insurance
Languages : en
Pages : 0
Book Description
Economic Considerations in Crop Insurance
Author: Warren R. BaileyPublisher:
ISBN:
Category : Crop insurance
Languages : en
Pages : 96
Book Description
Towards Understanding Crop Yield Systemic Risk and Its Implication for Crop Insurance Choices
Author: Xuche GongPublisher:
ISBN: 9781088396209
Category : Electronic dissertations
Languages : en
Pages : 81
Book Description
Area based insurance contracts have long been offered to crop producers as an option for risk management. However, the take-up rate for such programs remains low. In this paper, utilizing RMA unit-level corn yield data and NASS county-level corn yield data, we investigate roles of systemic risk and premiums subsidies in producers' choices between area and individual insurance contracts. We find that, on average, systemic risk explains slightly more than one third of total unit yield variability. Systemic risk is high in the Southern and Western Corn Belts and its geographic distribution matches well the geographic distribution of county yield variance. Systemic risk increases with both beneficial and stressful heat accumulations, frequency of drought, and land quality. We also study the lower bound on subsidy rate for area insurance when normalized by that for individual insurance such that the expected net returns to area yield insurance equals the expected net return of individual yield insurance. We find that this lower bound is negatively correlated with systemic risk. Producers in high systemic risk counties will require fewer subsidies to possibly choose area insurance over individual insurance. Moreover, we find that were transfer maximization a producer's only concern then the current area subsidy rate might be a major deterrent for producers to choose low coverage level area insurance. Raising the area insurance subsidy rate might be a feasible option to induce more area insurance demand because the transfer-equalizing area insurance subsidy rate exceeds 100% for only a small fraction of producers.
The Effects of Crop Yield Insurance Designs on Farmer Participation and Welfare
Author: H. Holly WangPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
The performance of individual farm yield and area yield crop insurance programs is evaluated for a representative Iowa corn farm using numerical optimization of expected utility and simulation techniques. Several different contract design features are studied, including the nature of the yield index which triggers insurance payouts, alternative restrictions on coverage levels, and alternative pricing structures. Performance is evaluated in terms of impacts on farmer participation and welfare and is examined in a portfolio setting where futures and options are also available to farmers. The relative performance of different crop insurance designs is found to be particularly sensitive to restrictions on coverage levels, the size of premium loadings, and the degree to which individual farm yields are correlated with area yields.
The Federal Crop Insurance Program Can be Made More Effective
Author: United States. General Accounting OfficePublisher:
ISBN:
Category : Crop insurance
Languages : en
Pages : 60
Book Description
Asymmetric Information in the Market for Yield and Revenue Insurance Products
Author: Shiva S. MakkiPublisher:
ISBN:
Category : Adverse selection (Insurance)
Languages : en
Pages : 44
Book Description
The Economics of Crop Insurance and Disaster Aid
Author: Barry K. GoodwinPublisher: American Enterprise Institute
ISBN: 9780844739083
Category : Business & Economics
Languages : en
Pages : 178
Book Description
This study is the first to provide a comprehensive and in-depth economic analysis of the origins and consequences of U.S. crop insurance and disaster relief programs. The authors investigate the policy options for disaster assistance and crop insurance, beginning with the recognition that current policies are unsatisfactory.