Author: Saskatchewan. Agriculture Development FundPublisher:
ISBN:
Category : Crop insurance
Languages : en
Pages : 290
Book Description
There is a growing concern that the Saskatchewan Crop Insurance program inhibits soil conservation and slows the adoption of new technology. Differences in regional participation rates are also a concern. This report examines and explains the influence of crop insurance on management decisions and the differences in participation rates in various regions of the province. A conceptual model was developed that explains how a general crop insurance program affects farm management decisions, particularly the decision to participate, as well as the traditional principle-agent problem of moral hazard (changing farm practices because of crop insurance) and adverse selection (participators tend to have slightly lower yields). To test the hypotheses of the model, survey data was collected from 250 producers in four separate regions. Both participants and non-participants were contacted, allowing a comparison of socio-economic data and farm practices.