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| Pincheira, Pablo; Zeuli, Kimberly A.. |
| The purpose of this paper it to theoretically investigate the potential benefits that arise from a cooperative selling a government subsidized area-yield contract (i.e., the Group Risk Plan). The indemnities in area-yield contracts are triggered by a geographically determined yield (e.g, a country-wide yield average) instead of the more conventional individual actual production history. Therefore, an area-yield contract would be appropriate for managing the cooperative's systemic throughput risk. The cooperative would also capture some of the substantial government subsidies that are normally given to a private insurance company. Our primary finding is that farmers should be indifferent when considering the decisions to purchase area-yield insurance... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Risk and Uncertainty; Agribusiness. |
| Ano: 2005 |
URL: http://purl.umn.edu/31822 |
