Consulta: subjectFacets:"Crop insurance"
Registros recuperados: 114
Data/hora: 11/06/2024 11:07:19

Village and Household Economies in India's Semi-arid Tropics
Provedor de dados: 30
Autores: S.
Palavras-chave: Tropical zones; Economic systems; Nutritional status (soil); Crop insurance; Arid zones; Nutrient intake; Manpower; Insurance; Sorghum.
Ano: 1984
URL: http://agropedia.iitk.ac.in/openaccess/?q=node/4076

PREMIUM RATES FOR YIELD GUARANTEE AND INCOME PROTECTION CROP INSURANCE FOR GEORGIA AND SOUTH CAROLINA PEACHES
Provedor de dados: 31
Autores: Miller,   Stephen E.; Kahl,   Kandice H.; Rathwell,   P. James.
We estimate actuarially sound premium rates for individual yield guarantee and income protection crop insurance products for Georgia and South Carolina peaches.  In most cases, the premium rate for an income protection product equals or exceeds the premium rate for an individual yield guarantee product for a given coverage level and average farm yield.  Although the premium rates for the two products differ in a statistical sense, they do not appear to differ in an economic sense except at high coverage levels for growers with very high yields.
Tipo: Conference Paper or Presentation
Palavras-chave: Crop insurance; Yield guarantee; Income protection; Peaches; Crop Production/Industries; Risk and Uncertainty.
Ano: 1999
URL: http://purl.umn.edu/21699

Using a Farmer's Beta for Improved Estimation of Actual Production History (APH) Yields
Provedor de dados: 31
Autores: Carriquiry,   Miguel A.; Babcock,   Bruce A.; Hart,   Chad E.
The effect of sampling error in estimation of farmers' mean yields for crop insurance purposes is explored using farm-level corn yield data in Iowa from 1990 to 2000 and Monte Carlo simulations. We find that sampling error combined with nonlinearities in the insurance indemnity function will result in empirically estimated crop insurance rates that exceed actuarially fair values by between 2 and 16 percent, depending on the coverage level and the number of observations used to estimate mean yields. Accounting for the adverse selection caused by sampling error results in crop insurance rates that will exceed fair values by between 42 and 127 percent. We propose a new estimator for mean yields based on a common decomposition of farm yields into systemic and...
Tipo: Working or Discussion Paper
Palavras-chave: Actual production history (APH); Crop insurance; Mean yields estimation; Sampling error; Farm Management.
Ano: 2005
URL: http://purl.umn.edu/18600

WEATHER DERIVATIVES AND SPECIFIC EVENT RISK
Provedor de dados: 31
Autores: Turvey,   Calum G.
This paper investigates the relationship between weather events and agricultural risks. Specific event risks are defined by outcomes related to a specific event such as low temperature and rainfall. Using Ontario data this paper describes specific events and shows how these specific events can be insured using weather derivatives and insurance.
Tipo: Conference Paper or Presentation
Palavras-chave: Heat insurance; Rainfall insurance; Weather derivatives; Weather options; Crop insurance; Agricultural risk; Risk and Uncertainty.
Ano: 1999
URL: http://purl.umn.edu/21550

Impacts of the SURE Standing Disaster Assistance Program on Producer Risk Management and Crop Insurance Programs
Provedor de dados: 31
Autores: Anderson,   John D.; Barnett,   Barry J.; Coble,   Keith H.
This research investigates the potential effects of the row crop provisions of the standing disaster assistance program (SURE) in the 2008 Farm Bill.  Results suggest little impact on producer crop insurance purchase decisions, though the program does seem to provide an incentive for mid-level coverage.  Payments under the program should be expected to differ considerably across geographic regions and levels of diversification, with the program providing the greatest benefit to undiversified producers in more risky production regions.
Tipo: Conference Paper or Presentation
Palavras-chave: Crop insurance; Disaster assistance; Farm Bill; SURE; Agricultural and Food Policy; Farm Management; Risk and Uncertainty; Q12; Q18.
Ano: 2009
URL: http://purl.umn.edu/49304

Testing Day’s Conjecture that More Nitrogen Decreases Crop Yield Skewness
Provedor de dados: 31
Autores: Du,   Xiaodong; Hennessy,   David A.; Yu,   Cindy L.
While controversy surrounds skewness attributes of typical yield distributions, a better understanding is important for agricultural policy assessment and for crop insurance rate setting. Day (1965) conjectured that crop yield skewness declines with an increase in low levels of nitrogen use, but higher levels have no effect. In a theoretical model based on the law of the minimum (von Liebig) technology, we find conditions under which Day’s conjecture applies. Employing four experimental plot datasets, we investigate the conjecture by introducing (a) a flexible Bayesian extension of the Just-Pope technology to incorporate skewness, and (b) a quantile-based measure of skewness shift. For corn yields, the Bayesian estimation provides strong evidence in favor...
Tipo: Working or Discussion Paper
Palavras-chave: Crop insurance; Gibbs sampler; Just and Pope technology; Negative skewness; Quantile regression.; Crop Production/Industries; Political Economy; Research Methods/ Statistical Methods; Risk and Uncertainty.
Ano: 2010
URL: http://purl.umn.edu/93471

Current Issues in Crop Insurance (PowerPoint)
Provedor de dados: 31
Autores: Anderson,   Richard.
Tipo: Conference Paper or Presentation
Palavras-chave: Crop insurance; Risk; Risk Management Agency; Risk and Uncertainty; D81.
Ano: 2009
URL: http://purl.umn.edu/48909

Constructing Farm Level Yield Densities from Aggregated Data: Analysis and Comparison of Approaches
Provedor de dados: 31
Autores: Cooper,   Joseph C.; Langemeier,   Michael R.; Schnitkey,   Gary D.; Zulauf,   Carl R.
Yield variability can be significantly higher at the farm level than at more aggregated levels, including the county. However, due to a dearth of available farm level data, much stochastic analysis involving farm yields utilizes more aggregated yield data as a proxy for the farm level.  We empirically evaluate farm-level variability using longitudinal farm level data sets available from the Kansas Farm Management Association and the Illinois Farm Business and Farm Management Association.  For corn, soybeans, and wheat, we compare the farm level yield variability obtained from this data to that inferred from Federal crop insurance premiums.  The farm management data exhibit lower yield variability than are implied by the crop insurance premiums.
Tipo: Conference Paper or Presentation
Palavras-chave: Yield variability; Crop insurance; Corn; Wheat; Soybeans; Agricultural and Food Policy; Crop Production/Industries; Research Methods/ Statistical Methods; Risk and Uncertainty.
Ano: 2009
URL: http://purl.umn.edu/49216

Actuarial Impacts of Loss Cost Ratio Ratemaking in U.S. Crop Insurance Programs
Provedor de dados: 31
Autores: Woodard,   Joshua D.; Sherrick,   Bruce J.; Schnitkey,   Gary D.
This study examines the actuarial implications of the loss cost ratio (LCR) ratemaking methodology employed by the Risk Management Agency as a component of base rates for U.S. crop insurance programs, and identifies specific conditions required for the LCR methodology to result in unbiased rates when liabilities trend. Specifically, constant relative yield risk resulting in growing absolute variance through time and other restrictive requirements are required for the LCR to result in unbiased rates. These requirements are tested against a large farm-level data set for Illinois corn. Our findings indicate that the conditions required for appropriate use of the LCR methodology are violated for this high premium volume market, resulting in large implied rate...
Tipo: Journal Article
Palavras-chave: Actuarially fair; Crop insurance; Insurance rating; Loss cost ratio; Risk growth; Risk Management Agency; Yield trends; Crop Production/Industries; Risk and Uncertainty.
Ano: 2011
URL: http://purl.umn.edu/105550

REVENUE INSURANCE FOR GEORGIA AND SOUTH CAROLINA PEACHES
Provedor de dados: 31
Autores: Miller,   Stephen E.; Kahl,   Kandice H.; Rathwell,   P. James.
We estimate actuarially fair premium rates for yield and revenue insurance for Georgia and South Carolina peaches. The premium rates for both products decrease at a decreasing rate as the mean farm-level yield increases. In general, the premium rate for revenue insurance exceeds the premium rate for yield insurance for a given coverage level and expected yield. Although the revenue and yield insurance rates differ in a statistical sense, they do not appear to differ in an economic sense except at high coverage levels for growers with very high yields.
Tipo: Journal Article
Palavras-chave: Crop insurance; Peaches; Revenue insurance; Yield insurance; Risk and Uncertainty.
Ano: 2000
URL: http://purl.umn.edu/15391

Modeling Texas Dryland Cotton Yields, With Application to Crop Insurance Actuarial Rating
Provedor de dados: 31
Autores: Chen,   Shu-Ling; Miranda,   Mario J.
Texas dryland upland cotton yields have historically exhibited greater variation and more distributional irregularities than the yields of other crops, raising concerns that conventional parametric distribution models may generate biased or otherwise inaccurate crop insurance premium rate estimates. Here, we formulate and estimate regime-switching models for Texas dryland cotton yields in which the distribution of yield is conditioned on local drought conditions. Our results indicate that drought-conditioned regime-switching models provide a better fit to Texas county-level dryland cotton yields than conventional parametric distribution models. They do not, however, generate significantly different Group Risk Plan crop insurance premium rate estimates.
Tipo: Journal Article
Palavras-chave: Actuarial rating; Adverse selection; Cotton; Crop insurance; Group risk plan; Regime-switching; Yield distribution; Agribusiness; Crop Production/Industries; Farm Management; Q10; Q14; Q18.
Ano: 2008
URL: http://purl.umn.edu/45522

A choice experiment method to assess vegetables producers’ preferences for crop insurance
Provedor de dados: 31
Autores: Mercade,   Lluc; Gil,   Jose Maria; Kallas,   Zein; Serra,   Jordi.
Agricultural producers face many risks in their economic activity due to weather conditions, plant or animal diseases, price volatility, policy changes and so on. One of the management tools to deal with some of these risks is the crop insurance system. In Catalonia (North-East of Spain) farmers’ participation in crop insurance for vegetables is low. Only 5 percent of the vegetables area is insured, when in Spain, as a whole, this percentage is around 20 percent. Different reasons have been suggested to explain this low participation ratio such as low risk perception, risk diversification, insurance cost or crop damage assessment rules, among others. However, no systematic research has been undertaken to assess farmers’ preferences for crop insurance in...
Tipo: Conference Paper or Presentation
Palavras-chave: Crop insurance; Vegetables; Choice experiments; Catalonia.; Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety.
Ano: 2009
URL: http://purl.umn.edu/58090

Modeling Crop prices through a Burr distribution and Analysis of Correlation between Crop Prices and Yields using a Copula method.
Provedor de dados: 31
Autores: Tejeda,   Hernan A.; Goodwin,   Barry K.
Replaced with revised version of paper 07/18/08.
Tipo: Conference Paper or Presentation
Palavras-chave: Crop insurance; Burr XII distribution; Copula methods; Indemnity payouts; Crop Production/Industries; Demand and Price Analysis.
Ano: 2008
URL: http://purl.umn.edu/6061

Modeling the Crop Insurance Industry Portfolio Gains and Losses (PowerPoint)
Provedor de dados: 31
Autores: Vergara,   Oscar; Zuba,   Gerhard; Seaquist,   Jack.
Powerpoint slide show presenting information about AIR (the first catastrophic modeling company), weather-based yield models, agricultural portfolio loss model, and applications to crop insurance/reinsurance.
Tipo: Conference Paper or Presentation
Palavras-chave: Risk; Crop insurance; Reinsurance; Modeling; Agricultural loss; Loss model; Yield model; Risk and Uncertainty.
Ano: 2008
URL: http://purl.umn.edu/43766

EVALUATION OF CROP INSURANCE PREMIUM RATES FOR GEORGIA AND SOUTH CAROLINA PEACHES
Provedor de dados: 31
Autores: Miller,   Stephen E.; Kahl,   Kandice H.; Rathwell,   P. James.
We estimate actuarially fair premium rates for yield insurance for Georgia and South Carolina peaches for comparison to the premium rates established by the Risk Management Agency (RMA) for the 1999 crop. The RMA premium rates varied from county to county, but were identical for all growers in a given county. The estimated premium rates decrease with the grower's expected yield.  The RMA rate structure encouraged adverse selection, as premium rates were too low for growers with low expected yields (especially at low coverage levels) and were too high for growers with high expected yields (especially at high coverage levels).
Tipo: Journal Article
Palavras-chave: Adverse selection; Crop insurance; Peaches; Premium rate; Yield guarantee; Risk and Uncertainty.
Ano: 2000
URL: http://purl.umn.edu/14711

A Portrait of Participants in Crop Insurance Programs
Provedor de dados: 31
Autores: Nimpagaritse,   Fabrice.
Farm Analysis Bulletins (FAB) are undertaken to provide a better understanding of Canadian agriculture at the farm level.  Using data from various sources such as Census, Farm Financial Surveys (FFS), Taxfiler, NISA database, etc, FAB's provide information on farm situation as well as highlighting and discussing farm related issues. By using the Farm Financial Surveys (1999 to 2004), this bulletin provides characteristics of farmers participating in crop insurance programs. Charts and tables with a brief accompanying text are used to describe participants in crop insurance.  Participation rate in crop insurance has grown slightly from 49% in 1999 to 53% in 2003.Grains and oilseeds farms are more likely to participate in crop insurance programs than other...
Tipo: Report
Palavras-chave: Crop insurance; Crop insurance programs; Risk management; Risk protection; Agribusiness; Agricultural and Food Policy; Agricultural Finance; Farm Management; Financial Economics.
Ano: 2005
URL: http://purl.umn.edu/53099

Portfolio Allocation and Alternative Structures of the Standard Reinsurance Agreement
Provedor de dados: 31
Autores: Vedenov,   Dmitry V.; Miranda,   Mario J.; Dismukes,   Robert; Glauber,   Joseph W.
This paper examines how insurance companies participating in delivery of crop insurance would change patterns of portfolio allocation across reinsurance funds in reaction to the 2005 Standard Reinsurance Agreement. The returns of insurance companies under the SRA are calculated using a simulation model. An heuristic allocation rule is introduced in order to imitate portfolio allocation strategies of participating companies. The main conclusion of the analysis is that the bulk of changes in portfolio allocations are likely to be caused by the introduction of "retained net book quota share" reinsurance rather than adjustments in the cession limits and retention requirements for the Assigned Risk Fund.
Tipo: Journal Article
Palavras-chave: Crop insurance; Portfolio allocation strategies; Reinsurance funds; Standard Reinsurance Agreement; Risk and Uncertainty.
Ano: 2006
URL: http://purl.umn.edu/10145

Land Use Consequences of Crop Insurance Subsidies
Provedor de dados: 31
Autores: Miao,   Ruiqing; Feng,   Hongli; Hennessy,   David A.
There have long been concerns that federal crop insurance subsidies may significantly impact land use decisions. It is well known that classical insurance market information asymmetry problems can lead to a social excess of risky land entering crop production. Our conceptual model shows that the problem will arise absent any information failures. This is because the subsidy is i) proportional to acres planted, and ii) greatest for the most production risky land. Using farm-level data, we follow this observation through to establish the implications of subsidies for the extent of crop production, with particular emphasis on U.S. regions where the cropland growth is likely to have marked adverse environmental impacts. Simulation results show that when...
Tipo: Working or Discussion Paper
Palavras-chave: Crop insurance; Land use; Crop yields; Yield risk measurement; Agricultural and Food Policy; Crop Production/Industries; Land Economics/Use; Q15; Q18; Q24.
Ano: 2011
URL: http://purl.umn.edu/103891

Optimal Coverage Level Choice with Individual and Area Plans of Insurance
Provedor de dados: 31
Autores: Bulut,   Harun; Collins,   Keith J.; Zacharias,   Thomas P.
We theoretically examine a farmer’s coverage demand with area and individual insurance plans as either separate or integrated options. The individual and area losses are assumed to be imperfectly and positively correlated. With actuarially fair rates, the farmer will fully insure with the individual plan and demand no area insurance regardless of the plans being separate or integrated. Under separate plans, free area insurance and the fair rate for individual insurance, area insurance replaces a portion of individual insurance demand. Under integrated plans, free area insurance, and the fair rate for individual insurance, the farmer will over-insure with individual plan and demand additional area insurance.
Tipo: Conference Paper or Presentation
Palavras-chave: Agricultural risk; Area plans of insurance; Crop insurance; Agricultural and Food Policy; Agricultural Finance; Crop Production/Industries; Demand and Price Analysis; Farm Management; Financial Economics; Industrial Organization; Marketing; Production Economics; Research Methods/ Statistical Methods; Risk and Uncertainty; D81; G22; Q12; Q18.
Ano: 2011
URL: http://purl.umn.edu/103185

Optimal Coverage Level Choice with Individual and Area Plans of Insurance
Provedor de dados: 31
Autores: Bulut,   Harun; Collins,   Keith J.; Zacharias,   Thomas P.
We theoretically examine a farmer’s coverage demand with area and individual insurance plans as either separate or integrated options. The individual and area losses are assumed to be imperfectly and positively correlated. With actuarially fair rates, the farmer will fully insure with the individual plan and demand no area insurance regardless of the plans being separate or integrated. Under separate plans, free area insurance and the fair rate for individual insurance, area insurance replaces a portion of individual insurance demand. Under integrated plans, free area insurance, and the fair rate for individual insurance, the farmer over-insures using both area and individual plans.
Tipo: Conference Paper or Presentation
Palavras-chave: Agricultural risk; Area plans of insurance; Crop insurance; Agribusiness; Agricultural and Food Policy; Agricultural Finance; Crop Production/Industries; Demand and Price Analysis; Farm Management; Research Methods/ Statistical Methods; Risk and Uncertainty; D81; G22; Q12; Q18.
Ano: 2011
URL: http://purl.umn.edu/98803

UNDERSTANDING CROP INSURANCE PRINCIPLES: A PRIMER FOR FARM LEADERS
Provedor de dados: 31
Autores: Barnett,   Barry J.; Coble,   Keith H.
Federal policy-makers increasingly emphasize the Federal Crop Insurance Program as the primary federal risk management program for farmers. Farm leaders need to understand the underlying mechanics of insurance products if they are to effectively argue their interests and contribute constructively to future agricultural policy dialogue.  Further they need to understand the unique circumstances created by the fact that the Federal Crop Insurance program functions as a public-private partnership between the U.S. government and private insurance companies. This manuscript describes both the fundamental features of insurance products and the political economy of the federal crop insurance program.
Tipo: Working or Discussion Paper
Palavras-chave: Crop insurance; Revenue insurance; Insurability criteria; Risk and Uncertainty.
Ano: 1999
URL: http://purl.umn.edu/15784

Risk in Agriculture: Modeling Revenue Insurance for Crop Farms in Belgium
Provedor de dados: 31
Autores: Hansen,   Kristiana; Frahan,   Bruno Henry de.
With trade liberalization in the Common Agricultural Policy, farmers within the European Union are increasingly exposed to the risk of fluctuations in output price and yields. Using numerical simulation methods, we model the effects of crop insurance on farm revenues and land allocation patterns among arable crop farms in the Region of Wallonia in the south of Belgium. We employ a mathematical programming framework within which we have embedded an econometrically estimated, farm-specific cost function that allows us to analyze the farm-specific effects of crop insurance.
Tipo: Conference Paper or Presentation
Palavras-chave: Crop insurance; Yield risk; Belgium; Agricultural and Food Policy; Risk and Uncertainty.
Ano: 2010
URL: http://purl.umn.edu/61535

Coping with Systemic Risk in Index-based Crop Insurance
Provedor de dados: 31
Autores: Shen,   Zhiwei; Odening,   Martin.
The implementation of index-based crop insurance is often impeded by the existence of systemic risk of insured losses. We assess the effectiveness of two strategies for coping with systemic risk: regional diversification and securitization with catastrophe (CAT) bonds. The analysis is conducted in an equilibrium pricing framework which allows the optimal price of the insurance and the number of traded contracts to be determined. We also explore the role of basis risk and risk aversion of market agents. The model is applied to a hypothetical area yield insurance for rice producers in northeast China. If yields in two regions are positively correlated, we find that enlarging the insured area leads to an increasing insurance premium. Unless capital market...
Tipo: Presentation
Palavras-chave: Crop insurance; Systemic risk; Risk pooling; Securitization; Risk and Uncertainty; Q11; Q14.
Ano: 2012
URL: http://purl.umn.edu/122555

MARKETING OF COTTON FIBER IN THE PRESENCE OF YIELD AND PRICE RISK
Provedor de dados: 31
Autores: Wojciechowski,   Jan; Ames,   Glenn C.W.; Turner,   Steven C.; Miller,   Bill R.
An expected-utility model and a chance-constrained linear programming model were used to analyze four marketing strategies and seven crop insurance alternatives for cotton marketing in Georgia.  The results suggest that existing marketing tools and insurance alternatives can be used to reduce cotton producers' revenue risk.  The optimal level of yield and price insurance coverage depends on an individual producer's risk aversion.
Tipo: Journal Article
Palavras-chave: Crop insurance; Marketing strategies; Risk aversion; Marketing.
Ano: 2000
URL: http://purl.umn.edu/15315

Evaluating Crop and Revenue Insurance Products as Risk Management Tools for Texas Cotton Producers
Provedor de dados: 31
Autores: Field,   James E.; Misra,   Sukant K.; Ramirez,   Octavio A.
This paper develops and illustrates the application of a procedure to evaluate and compare the cost effectiveness of alternative crop insurance products for cotton in terms of their effect on expected producer net returns and the variation of net returns.  Farm unit-level cotton yields and state-level price distributions are estimated by a multivariate nonnormal parametric modeling procedure and used to simulate the net returns to alternative crop insurance products over a 10-year planning horizon.  The ranking of alternative insurance products using third-degree stochastic dominance is presented for Texas cotton producers.
Tipo: Journal Article
Palavras-chave: Cotton; Crop insurance; Multivariate nonnormal parametric modeling; Stochastic dominance; C5; Q1.
Ano: 2003
URL: http://purl.umn.edu/37314

Recap of the 2008 Crop Insurance Year: What Can We Learn from Models? (PowerPoint)
Provedor de dados: 31
Autores: Vergara,   Oscar; Zuba,   Gerhard; Seaquist,   Jack.
Tipo: Conference Paper or Presentation
Palavras-chave: Crop insurance; Models; Decision-making; Risk and Uncertainty; D81.
Ano: 2009
URL: http://purl.umn.edu/48910

Evaluation of Risk Management Methods for Satsuma Mandarin
Provedor de dados: 31
Autores: Lindsey,   Jeanne K.; Duffy,   Patricia A.; Nelson,   Robert G.; Ebel,   Robert C.; Dozier,   William A.
Simulation of production budgets were used to compare net discounted returns and the distribution of returns under alternative risk-mitigation scenarios.  Results indicate that the combination of freeze protection and crop insurance increases expected net discounted 20-year returns while decreasing the downside risk.  Break-even prices ranged from $.257 to $.289 per pound.  Crop insurance returns were constant across price.
Tipo: Conference Paper or Presentation
Palavras-chave: Satsuma oranges; Freeze protection; Crop insurance; Production budget; Simulation; Crop Production/Industries; Farm Management; Risk and Uncertainty; C63; D81; Q12.
Ano: 2009
URL: http://purl.umn.edu/46754

A TWO-STAGE MODEL OF THE DEMAND FOR SPECIALTY CROP INSURANCE
Provedor de dados: 31
Autores: Knox,   Lyle; Richards,   Timothy J.
Legislators are considering raising catastrophic (CAT 50% coverage) crop insurance premiums.  However, estimates of a two-stage coverage-choice and participation model using county-level data from California grape growers show that the demand for CAT insurance is price-elastic, therefore, premium increases will worsen the financial performance of the grape-insurance program.
Tipo: Conference Paper or Presentation
Palavras-chave: Crop insurance; Discrete / continuous choice; Grapes; Multinomial logit; Research Methods/ Statistical Methods; Risk and Uncertainty.
Ano: 1999
URL: http://purl.umn.edu/21681

Crop Revenue and Yield Insurance Demand: A Subjective Probability Approach
Provedor de dados: 31
Autores: Shaik,   Saleem; Coble,   Keith H.; Knight,   Thomas O.; Baquet,   Alan E.; Patrick,   George F.
A multinomial logit is utilized to model the choice of whether to purchase yield or revenue insurance using subjectively elicited survey data. Our results indicate that the demand for crop insurance is inelastic (-0.40), consistent with most earlier yield elasticity estimates, but the elasticity for choices between yield and revenue insurance is found to be relatively more elastic (-0.88).
Tipo: Journal Article
Palavras-chave: Crop insurance; Elasticities; Multinomial logit model; Revenue demand; Subjective elicitation; Survey; Agribusiness; Crop Production/Industries; Demand and Price Analysis; Q18.
Ano: 2008
URL: http://purl.umn.edu/47256

Factors Affecting Farmers’ Utilization of Agricultural Risk Management Tools: The Case of Crop Insurance, Forward Contracting, and Spreading Sales
Provedor de dados: 31
Autores: Velandia,   Margarita M.; Rejesus,   Roderick M.; Knight,   Thomas O.; Sherrick,   Bruce J.
Factors affecting the adoption of crop insurance, forward contracting, and spreading sales are analyzed using multivariate and multinomial probit approaches that account for simultaneous adoption and/or correlation among the three risk management adoption decisions. Our empirical results suggest that the decision to adopt crop insurance, forward contracting, and/or spreading sales are correlated. Richer insights can be drawn from our multivariate and multinomial probit analysis than from separate, single-equation probit estimation that assumes independence of adoption decisions. Some factors significantly affecting the adoption of the risk management tools analyzed are proportion of owned acres, off-farm income, education, age, and level of business risks.
Tipo: Journal Article
Palavras-chave: Adoption decisions; Crop insurance; Forward contracting; Multinomial probit; Multivariate probit; Risk management; Spreading sales; Agribusiness; Agricultural Finance; Crop Production/Industries; Demand and Price Analysis; Risk and Uncertainty; G22; Q12; Q18.
Ano: 2009
URL: http://purl.umn.edu/48751

Using a Farmer's Beta for Improved Estimation of Expected Yields
Provedor de dados: 31
Autores: Carriquiry,   Miguel A.; Babcock,   Bruce A.; Hart,   Chad E.
Effects of sampling error in estimation of farmers’ mean yields for crop insurance purposes and their implications for actuarial soundness are explored using farm-level corn yield data in Iowa. Results indicate that sampling error, combined with nonlinearities in the indemnity function, leads to empirically estimated insurance rates that exceed actuarially fair values. The difference depends on the coverage level, the number of observations used, and the participation strategy followed by farmers. A new estimator for mean yields based on the decomposition of farm yields into systemic and idiosyncratic components is proposed, which could lead to improved rate-making and reduce adverse selection.
Tipo: Journal Article
Palavras-chave: Actual production history (APH); Adverse selection; Crop insurance; Mean yields estimation; Sampling error; Crop Production/Industries; Farm Management.
Ano: 2008
URL: http://purl.umn.edu/36707

INVESTIGATING THE IMPLICATIONS OF MULTI-CROP REVENUE INSURANCE FOR PRODUCER RISK MANAGEMENT
Provedor de dados: 31
Autores: Miller,   J. Corey; Coble,   Keith H.; Barnett,   Barry J.
This study investigates the potential for alternative multi-crop revenue insurance designs in  comparison to single crop yield and  revenue insurance designs. A  non-parametric multi-crop insurance model is developed which subsumes the single crop designs. The results compare alternative designs in terms of rate levels and risk reduction gains for representative Mississippi producers.
Tipo: Working or Discussion Paper
Palavras-chave: Crop insurance; Revenue insurance; Risk; Risk and Uncertainty.
Ano: 2000
URL: http://purl.umn.edu/15802

How strong is the “natural hedge”? The effects of crop acreage and aggregation levels
Provedor de dados: 31
Autores: Finger,   Robert.
The level of natural hedge, i.e. the (negative) correlation between price and yield levels, is an important determinant for farmers’ income risks and their demand for risk management instruments. The natural hedge is often approximated with correlations observed at more aggregated levels, e.g. the county level. This induces biases because the natural hedge at the farm-level is smaller than on more aggregated levels. In this paper, we put this idea one step forward and investigate the empirical relationship between price-yield correlations and the underlying crop acreage, using farm-level data for 5 crops in Switzerland. We find that, for instance, a 1% increase in area under maize and intensive barley leads to a change in the correlation by -0.02 and...
Tipo: Presentation
Palavras-chave: Price-yield correlation; Aggregation bias; Crop insurance; Risk and Uncertainty; Q1; G2.
Ano: 2012
URL: http://purl.umn.edu/122538

PRODUCTION RISK AND CROP INSURANCE IN MALTING BARLEY: A STOCHASTIC DOMINANCE ANALYSIS
Provedor de dados: 31
Autores: Gustafson,   Cole R.; Wilson,   William W.; Dahl,   Bruce L.
Malt barley is an important specialty crop in the Northern Plains and growers mitigate risk with federally subsidized crop insurance and production contracts.  However, growers face considerable risk due to "“coverage gaps"” in crop insurance that result in uncertain indemnity payments due to uncertainty of their crop meeting contract specifications.  A stochastic dominance model is developed to evaluate alternative risk efficient strategies for growers with differing risk attitudes and production practices (irrigation vs. dryland).  Results show that efficient choices are highly dependent on risk attitudes for dryland growers, but not irrigated growers.  Sensitivities with respect to acceptance risk and level of crop insurance subsidization are presented....
Tipo: Conference Paper or Presentation
Palavras-chave: Crop insurance; Malting barley; Stochastic dominance; Stochastic efficiency; Risk and Uncertainty.
Ano: 2006
URL: http://purl.umn.edu/21095

A Crop Yield Expectation Stochastic Process with Beta Distribution as Limit
Provedor de dados: 31
Autores: Hennessy,   David A.
The modeling of price risk in the theory and practice of commodity risk management has been developed far beyond that of crop yield risk. This is in large part due to the use of plausible stochastic price processes. We use the Pólya urn to identify and develop a model of the crop yield expectation stochastic process over a growing season. The process allows a role for agronomic events, such as growing degree days. The model is internally consistent in adhering to the martingale property. The limiting distribution is the beta, commonly used in yield modeling. By applying binomial tree analysis, we show how to use the framework to study hedging decisions and crop valuation.
Tipo: Working or Discussion Paper
Palavras-chave: Crop insurance; Growing degree days; Martingale; Pólya urn; Stochastic process.; Risk and Uncertainty.
Ano: 2009
URL: http://purl.umn.edu/54829

Risk Management Education: An Examination of Crop Producers' Participation in Recent Programs and of Their Desire for Additional Training
Provedor de dados: 31
Autores: Knight,   Thomas O.; Coble,   Keith H.; Patrick,   George F.; Baquet,   Alan E.
Risk management education has been a focus of U.S. farm policy since 1996.  In support of significant ongoing United States Department of Agriculture (USDA) educational efforts, this study examines agricultural producers’ educational needs and interests. Data obtained through a survey of crop producers are used in probit models examining interest in additional training in five areas including forward contracting, futures and options, crop yield insurance, crop revenue insurance, and financial management.  The study results should be useful in determining appropriate risk management education program content and in indentifying and tailoring to specific target audiences.
Tipo: Journal Article
Palavras-chave: Commodity futures; Commodity options; Crop insurance; Forward contracting; Risk management; D81; D83; Q16.
Ano: 2003
URL: http://purl.umn.edu/43164

Influence of the Premium Subsidy on Farmers' Crop Insurance Coverage Decisions
Provedor de dados: 31
Autores: Babcock,   Bruce A.; Hart,   Chad E.
The Agricultural Risk Protection Act greatly increased the expected marginal net benefit of farmers buying high-coverage crop insurance policies by coupling premium subsidies to coverage level. This policy change, combined with cross-sectional variations in expected marginal net benefits of high-coverage policies, is used to estimate the role that premium subsidies play in farmers' crop insurance decisions. We use county data for corn, soybeans, and wheat to estimate regression equations that are then used to obtain insight into two policy scenarios. We first estimate that eventual adoption of actuarially fair incremental premiums, combined with current coupled subsidies, would increase farmers' purchase of high-coverage policies by almost 400 percent...
Tipo: Working or Discussion Paper
Palavras-chave: Agricultural Risk Protection Act; Crop insurance; Premium subsidies; Risk and Uncertainty.
Ano: 2005
URL: http://purl.umn.edu/18494

The Farm Level Impacts of Replacing Current Farm Programs with a Whole Farm Revenue Program
Provedor de dados: 31
Autores: Raulston,   J. Marc; Richardson,   James W.; Outlaw,   Joe L.; Knapek,   George M.
This study evaluates the farm level economic impacts of implementing a whole farm revenue insurance program in lieu of current government program payments on agricultural producers in major production areas of the United States.  Realizing a multitude of viable options exist, this study demonstrates one way a whole farm revenue coverage program could work at the farm level and makes comparisons between the current baseline situation and alternative levels of revenue coverage implementation.
Tipo: Conference Paper or Presentation
Palavras-chave: Agricultural policy; Simulation; Representative farms; Government payments; Crop insurance; Revenue coverage; Agricultural and Food Policy.
Ano: 2011
URL: http://purl.umn.edu/98785

A Two Stage Model of the Demand For Specialty Crop Insurance
Provedor de dados: 31
Autores: Richards,   Timothy J.
Proposals for reform of the federal multiple-peril crop insurance program for specialty crops seek to change fees for catastrophic (CAT) insurance from a nominal fifty-dollar per contract registration fee to an actuarially sound premium. Growers argue that this would cause a significant reduction in participation rates, thus impeding the program's goals of eventually obviating the need for ad hoc disaster payments and worsening the actuarial soundness of the program. The key policy issue is, therefore, empirical one - whether the demand for specialty crop insurance is elastic or inelastic. Previous studies of this issue using either grower or county-level field crop data typically treat the participation problem as either a discrete insure / don't insure...
Tipo: Working or Discussion Paper
Palavras-chave: California; Crop insurance; Discrete/continuous choice; Grapes; Multinomial logit.; Risk and Uncertainty.
Ano: 1998
URL: http://purl.umn.edu/28546

Patterns of Collusion in the U.S. Crop Insurance Program: An Empirical Analysis
Provedor de dados: 31
Autores: Rejesus,   Roderick M.; Little,   Bertis B.; Lovell,   Ashley C.; Cross,   Mike H.; Shucking,   Michael.
This article analyzes anomalous patterns of agent, adjuster, and producer claim outcomes and determines the most likely pattern of collusion that is suggestive of fraud, waste, and abuse in the federal crop insurance program.  Log-linear analysis of Poisson-distributed counts of anomalous entities is used to examine potential patterns of collusion.  The most likely pattern of collusion present in the crop insurance program is where agents, adjusters, and producers nonrecursively interact with each other to coordinate their behavior.  However, if a priori an intermediary is known to initiate and coordinate the collusion, a pattern where the producer acts as the intermediary is the most likely pattern of collusion evidenced in the data.  These results have...
Tipo: Journal Article
Palavras-chave: Abuse; Collusion; Crop insurance; Empirical analysis; Fraud; Waste; G22; Q12; Q18; Q19.
Ano: 2004
URL: http://purl.umn.edu/43393

Safety Nets or Trampolines? Federal Crop Insurance, Disaster Assistance, and the Farm Bill
Provedor de dados: 31
Autores: Goodwin,   Barry K.; Rejesus,   Roderick M.
We review the implications of the 2007 Farm Bill for the risk management dimensions of U.S. agriculture and policy. Legislative proposals suggest significant changes in risk management policy, including the introduction of state or national revenue insurance. We also pursue an empirical analysis of the interrelationships of crop insurance, disaster relief, and farm profitability. We find an inverse relationship between disaster assistance and insurance purchases. Our analysis also suggests that farmers that buy insurance and that receive disaster payments tend to have higher returns to farming.
Tipo: Journal Article
Palavras-chave: Crop insurance; Disaster payments; Farm Bill; Agribusiness; Agricultural and Food Policy; Crop Production/Industries; Risk and Uncertainty; Q18.
Ano: 2008
URL: http://purl.umn.edu/46980

Get a Grip: Should Area Revenue Coverage Be Offered Through the Farm Bill or as a Crop Insurance Program?
Provedor de dados: 31
Autores: Paulson,   Nicholas D.; Babcock,   Bruce A.
The successful expansion of the U.S crop insurance program has not eliminated ad hoc disaster assistance. An alternative currently being explored by Congress in preparation of the 2008 farm bill is a standing disaster relief program. One form such a program could take can be found in the area insurance programs currently offered by the U.S crop insurance program. Total per acre taxpayer costs of offering Group Risk Income Protection (GRIP) in Indiana, Illinois, and Iowa for corn and soybeans are estimated to have the ability to fund a country target revenue program at the 93% coverage level.
Tipo: Journal Article
Palavras-chave: Area insurance; Commodity programs; Crop insurance; Farm bill; Group Risk Income Protection; Agricultural and Food Policy; Agricultural Finance.
Ano: 2008
URL: http://purl.umn.edu/42458

Effects of Federal Risk Management Programs on Optimal Acreage Allocation and Nitrogen Use in a Texas Cotton-Sorghum System
Provedor de dados: 31
Autores: Seo,   Sangtaek; Mitchell,   Paul D.; Leatham,   David J.
We analyze the effects of crop insurance and the Marketing Loan Program on optimal nitrogen use and acreage allocation for a case cotton-sorghum farm in Texas.  A mathematical programming model is used to solve for the optimal nitrogen fertilizer rate, crop acreage allocation, coverage level, and price election factor, along with participation in the crop insurance and the Marketing Loan Program for both crops.  Results show that depending on the crop and farmer risk aversion, these federal risk management programs increase or decrease optimal fertilizer rates-6% to 3%, increase optimal cotton acreage 94% to 144%, and decrease sorghum acres up to 50%.
Tipo: Journal Article
Palavras-chave: Crop insurance; Extensive margin; Intensive margin; Loan deficiency payments; Revenue insurance; Q12; Q18.
Ano: 2005
URL: http://purl.umn.edu/43503

ENVIRONMENTAL EFFECTS OF AGRICULTURAL LAND-USE CHANGE: THE ROLE OF ECONOMICS AND POLICY
Provedor de dados: 31
Autores: Lubowski,   Ruben N.; Bucholtz,   Shawn; Claassen,   Roger; Roberts,   Michael J.; Cooper,   Joseph C.; Gueorguieva,   Anna; Johansson,   Robert C.
This report examines evidence on the relationship between agricultural land-use changes, soil productivity, and indicators of environmental sensitivity. If cropland that shifts in and out of production is less productive and more environmentally sensitive than other cropland, policy-induced changes in land use could have production effects that are smaller-and environmental impacts that are greater-than anticipated. To illustrate this possibility, this report examines environmental outcomes stemming from landuse conversion caused by two agricultural programs that others have identified as potentially having important influences on land use and environmental quality: Federal crop insurance subsidies and the Conservation Reserve Program (CRP), the Nation's...
Tipo: Report
Palavras-chave: Conservation Reserve Program (CRP); Crop insurance; Erosion; Extensive margin; Farm policy; Imperiled species; Land use; Land-use change; Land quality; Nutrient loss; Soil productivity; Environmental Economics and Policy; Land Economics/Use.
Ano: 2006
URL: http://purl.umn.edu/33591

Toward a Normative Theory of Crop Yield Skewness
Provedor de dados: 31
Autores: Hennessy,   David A.
While the preponderance of empirical studies point to negative crop yield skewness in a wide variety of contexts, the literature provides few clear insights on why this is so. The purpose of this paper is to make three points on the matter. We show formally that statistical laws on aggregates do not suggest a normal yield distribution. We explain that whenever the weather-conditioned mean yield has diminishing marginal product, then there is a disposition toward negative skewness in aggregate yields. This is because a high marginal product in bad weather states stretches out the left tail of the yield distribution relative to that of the weather distribution. Turning to disaggregated yields, we decompose unconditional skewness into weather-conditioned...
Tipo: Working or Discussion Paper
Palavras-chave: Conditional distribution; Crop insurance; Negative skewness; Spatial heterogeneity; Statistical laws.
Ano: 2008
URL: http://purl.umn.edu/37548

The Future of Environmental Compliance Incentives in U.S. Agriculture:  The Role of Commodity, Conservation, and Crop Insurance Programs
Provedor de dados: 31
Autores: Claassen,   Roger.
In recent years, direct payments—a type of farm commodity program payment—have made up a large share of Federal agriculture assistance that could be withheld from farmers who fail to comply with highly erodible land conservation (conservation compliance and sodbuster) or wetland conservation (swampbuster) provisions, known collectively as environmental compliance requirements. If direct payments are sharply reduced or eliminated to help reduce the Federal budget defi cit, compliance incentives would be reduced on many farms, potentially increasing environmental quality problems. Some farmers will still be subject to compliance through existing Federal agricultural programs(e.g., conservation or disaster programs) or programs that may succeed direct...
Tipo: Technical Report
Palavras-chave: Direct payment; Crop insurance; Conservation compliance; Sodbuster; Swampbuster; Environmental Economics and Policy; Land Economics/Use.
Ano: 2012
URL: http://purl.umn.edu/121803

Assessing the Farm Level Impacts of Yield and Revenue Insurance: an Expected Value-Variance Approach
Provedor de dados: 31
Autores: Berg,   Ernst.
This paper investigates the farm level impacts of multiple peril yield and revenue insurance in an expected value-variance framework. The analysis is conducted using stochastic simulation jointly with numerical optimisation. Simulation is used to compute the means and variances of revenues as affected by the insurance schemes under consideration. In a second step these results are incorporated in a whole-farm programming approach, which optimises a portfolio that consists of crop production and insurance activities. The results of a case study indicate that from the farmer's point of view there is an incentive to buy multiple peril crop insurance, because it significantly reduces the variability of income. The risk reduction through insurance in turn leads...
Tipo: Conference Paper or Presentation
Palavras-chave: Crop insurance; Risk management; Portfolio selection; Stochastic programming; Expected value-variance analysis; Risk and Uncertainty.
Ano: 2002
URL: http://purl.umn.edu/24834

Empirically Evaluating the Flexibility of the Johnson Family of Distributions: A Crop Insurance Application
Provedor de dados: 31
Autores: Lu,   Yue; Ramirez,   Octavio A.; Rejesus,   Roderick M.; Knight,   Thomas O.; Sherrick,   Bruce J.
This article examines the flexibility of the Johnson system of distributions by assessing its per-formance in terms of modeling crop yields for the purpose of setting actuarially fair crop in-surance premiums. Using data from corn farms in Illinois coupled with Monte Carlo simula-tion procedures, we found that average crop insurance premiums computed on the basis of the Johnson system provide reasonably accurate estimates even when the data are normal or come from a non-normal distribution other than the Johnson system (i.e., a beta). These results sug-gest that there is potential for using the Johnson system to rate previously uninsured crops that do not have historical insurance performance data upon which to base premium calculations.
Tipo: Journal Article
Palavras-chave: Crop insurance; Crop yield modeling; Johnson distribution; Premium rate setting; Risk and Uncertainty.
Ano: 2008
URL: http://purl.umn.edu/44740

An Internet-Based Tool for Weather Risk Management
Provedor de dados: 31
Autores: Turvey,   Calum G.; Norton,   Michael T.
This paper introduces a web-based computer program designed to evaluate weather risk man-agement and weather insurance in the United States. The paper outlines the economics of weather risk in terms of agricultural production and household well-being; defines weather risk in terms of intensity, duration, and frequency; and illustrates the computer program use by comparing heat and precipitation risks at Ardmore, Oklahoma, and Ithaca, New York.
Tipo: Journal Article
Palavras-chave: Weather insurance; Heat insurance; Precipitation insurance; Crop insurance; Weather derivatives; Risk and Uncertainty.
Ano: 2008
URL: http://purl.umn.edu/44739

Managing Risk in Farming: Concepts, Research, and Analysis
Provedor de dados: 31
Autores: Harwood,   Joy L.; Heifner,   Richard G.; Coble,   Keith H.; Perry,   Janet E.; Somwaru,   Agapi.
The risks confronted by grain and cotton farmers are of particular interest, given the changing role of the Government after passage of the 1996 Farm Act.  With the shift toward less government intervention in the post-1996 Farm Act environment, a more sophisticated understanding of risk and risk management is important to help producers make better decisions in risky situations and to assist policymakers in assessing the effectiveness of different types of risk protection tools. In response, this report provides a rigorous, yet accessible, description of risk and risk management tools and strategies at the farm level. It also provides never-before-published data on farmers' assessments of the risks they face, their use of alternative risk management...
Tipo: Report
Palavras-chave: Crop insurance; Diversification; Futures contracts; Leasing; Leveraging; Liquidity; Livestock insurance; Marketing contracts; Options contracts; Production contracts; Revenue insurance; Risk; Vertical integration; Farm Management; Risk and Uncertainty.
Ano: 1999
URL: http://purl.umn.edu/34081

Farm-Level Analysis of Risk Management Proposals
Provedor de dados: 31
Autores: Babcock,   Bruce A.; Hart,   Chad E.; Adams,   Gary M.; Westhoff,   Patrick C.
This paper presents a detailed report of the representative farm analysis (summarized in FAPRI Policy Working Paper #01-00). At the request of several members of the Committee on Agriculture, Nutrition, and Forestry of the U.S. Senate, we have continued to analyze the impacts of the Farmers' Risk Management Act of 1999 (S. 1666) and the Risk Management for the 21st Century Act (S. 1580). Earlier analysis reported in FAPRI Policy Working Paper #04-99 concentrated on the aggregate net farm income and government outlay impacts. The representative farm analysis is conducted for several types of farms, including both irrigated and non-irrigated cotton farms in Tom Green County, Texas; dryland wheat farms in Morton County, North Dakota and Sumner County, Kansas;...
Tipo: Working or Discussion Paper
Palavras-chave: Crop insurance; Farm analysis; Representative farm analysis; Revenue; Risk and Uncertainty.
Ano: 2000
URL: http://purl.umn.edu/18389

Do I Need Crop Insurance? Self Evaluating Crop Insurance as a Risk Management Tool in New York State
Provedor de dados: 31
Autores: Richards,   Steven T.
Tipo: Report
Palavras-chave: Crop insurance; Agribusiness; Crop Production/Industries.
Ano: 2009
URL: http://purl.umn.edu/49003

An Analysis of Farmers’ Perception and Awareness towards Crop Insurance as a Tool for Risk Management in Tamil Nadu
Provedor de dados: 31
Autores: Kumar,   D. Suresh; Barah,   B.C.; Ranganathan,   C.R.; Venkatram,   R.; Gurunathan,   S.; Thirumoorthy,   S.
To insulate farmers against risks in agriculture, government has launched several schemes such as National Agricultural Insurance Scheme and weather index based crop insurance schemes. But their coverage seems to be limited among the farmers primarily due to lack of full information. This paper has reported the results of a survey of 600 farmers conducted to assess their perception about various facets of crop insurance schemes. The Probit and Tobit models have been employed to analyse the factors affecting awareness among the farmers. Crop diversification index has also been used to examine the farmers’ adjustment mechanism against risks. The survey has revealed that most farmers (65%) are aware of risk mitigation measures of the government. But, only...
Tipo: Journal Article
Palavras-chave: Crop insurance; Risk management; Crop diversification index; Agricultural and Food Policy; Q14; Q18.
Ano: 2011
URL: http://purl.umn.edu/109413

Modeling Yield Risk Under Technological Change: Dynamic Yield Distributions and the U.S. Crop Insurance Program
Provedor de dados: 31
Autores: Zhu,   Ying; Goodwin,   Barry K.; Ghosh,   Sujit K.
The objective of this study is to evaluate the risk associated with major agricultural commodity yields in the United States. We are particularly concerned with the nonstationary nature of the yield distribution, which arises primarily as a result of technological progress and changing environmental conditions over time. In contrast to common two-stage methods, we propose an alternative parametric model that allows the moments of yield distributions to change with time. Several model selection techniques suggest the proposed time-varying model outperforms more conventional models in terms of in-sample goodness-of-fit, out-of-sample predictive power, and the prediction accuracy of insurance premium rates.
Tipo: Journal Article
Palavras-chave: Crop insurance; Model comparison; Time-varying distribution; Crop Production/Industries; Risk and Uncertainty.
Ano: 2011
URL: http://purl.umn.edu/105549

Economic Analysis of Supplemental Deductible Coverage as Recommended in the USDA's 2007 Farm Bill Proposal
Provedor de dados: 31
Autores: Mitchell,   Paul D.; Knight,   Thomas O.
A primary change to crop insurance contained in the USDA’s Farm Bill proposal is supplemental deductible coverage (SDC). SDC would allow farmers who purchase individual crop insurance coverage to purchase area-wide coverage in the amount of the individual policy deductible. This supplemental area-wide coverage would be similar to the existing Group Risk Plan policy, but with an accelerated indemnity schedule. Analysis indicates that SDC increases farmer certainty equivalents. The largest benefits are realized by farmers with high yield potential in counties with greater systemic risk. In general, optimal individual policy coverage levels modestly decrease when SDC is taken.
Tipo: Journal Article
Palavras-chave: Crop insurance; Area-wide coverage; Actual production history (APH); Group risk plan (GRP); Yield distribution; Risk and Uncertainty.
Ano: 2008
URL: http://purl.umn.edu/44743

Pólya’s Urn Model for Crop Yield Expectation Stochastic Process
Provedor de dados: 31
Autores: Hennessy,   David A.
Tipo: Conference Paper or Presentation
Palavras-chave: Crop insurance; Growing degree days; Martingale; Pólya urn; Stochastic process.; Crop Production/Industries; Financial Economics; Production Economics.
Ano: 2010
URL: http://purl.umn.edu/60896

Techniques for Multivariate Simulation from Mixed Marginal Distributions with Application to Whole-Farm Revenue Simulation
Provedor de dados: 31
Autores: Anderson,   John D.; Harri,   Ardian; Coble,   Keith H.
Alternative techniques for representing dependencies among variables in multivariate simulation are discussed and compared in the context of rating a whole-farm insurance product. A procedure by lman and Conover (IC) that is common in actuarial applications is compared to a new technique detailed by Phoon, Quek, and Huang (PQHl. Results suggest that rates derived from the IC procedure may be inaccurate because the procedure produces biased estimates of correlation between simulated variables. This situation is improved with the PQH procedure.
Tipo: Journal Article
Palavras-chave: Correlation; Crop insurance; Multivariate simulation; Whole-farm revenue; Agricultural Finance; Risk and Uncertainty.
Ano: 2009
URL: http://purl.umn.edu/50076

On the Systemic Nature of Weather Risk
Provedor de dados: 31
Autores: Xu,   Wei; Filler,   Gunther; Odening,   Martin; Okhrin,   Ostap.
Systemic weather risk is a major obstacle for the formation of private (nonsubsidized) crop insurance. This paper explores the possibility of spatial diversification of insurance by estimating the joint occurrence of unfavorable weather conditions in different locations. For that purpose copula methods are employed that allow an adequate description of stochastic dependencies between multivariate random variables. The estimation procedure is applied to weather data in Germany. Our results indicate that indemnity payments based on temperature as well as on cumulative rainfall show strong stochastic dependence even at a national scale. Thus the possibility to reduce risk exposure by increasing the trading area of the insurance is limited. Irrespective of...
Tipo: Conference Paper or Presentation
Palavras-chave: Weather risk; Crop insurance; Copula; Risk and Uncertainty; C14; Q19.
Ano: 2009
URL: http://purl.umn.edu/49131

Em busca de um novo paradigma para o seguro rural no Brasil
Provedor de dados: 31
Autores: Ozaki,   Vitor Augusto.
The implementation of a crop insurance program is an old requirement of the agricultural sector. After the failure of the National Crop Insurance Company (CNSA), in the period of 1954 through 1966, the federal government started to stimulate the agricultural insurance market. Aiming increase the crop insurance operations the Government approved Law n. 10.823 which subsidize part of the premium paid by farmers. The nature of this work is essentially analytical, such that any quantitative model has been established. Over the years, government risk management tools, such as, Proagro and some private insurance companies have had unsatisfactory financial results suggesting that the current crop insurance model presents signals of decline. This article shows the...
Tipo: Journal Article
Palavras-chave: Crop insurance; Paradigm; Subsidy; Agribusiness; Q19.
Ano: 2008
URL: http://purl.umn.edu/61274

The Demand for Specialty-Crop Insurance: Adverse Selection and Inefficiency
Provedor de dados: 31
Autores: Richards,   Timothy J.; Mischen,   Pamela.
The twin problems of moral hazard and adverse selection are often blamed for the lack of insurance for many fruits and vegetables. This paper develops an alternative method of testing for adverse selection that uses a two-stage approach to determine the effects of technical inefficiency on the demand for insurance. With this approach, technical inefficiency is interpreted as an indicator of adverse selection. Because there is no active insurance market for many specialty crops, and thin markets for those that are insurable, a contingent valuation approach is used to obtain the data necessary to estimate the demand for three different types of insurance. The results suggest adverse selection may be a deterrent to the viability of extending the breadth of...
Tipo: Journal Article
Palavras-chave: Contingent valuation; Crop insurance; Fruits and vegetables; Moral hazard; Risk; Uncertainty; Agribusiness; Financial Economics; Risk and Uncertainty.
Ano: 1998
URL: http://purl.umn.edu/90435

Economic Evaluation of Bt Corn Refuge Insurance
Provedor de dados: 31
Autores: Mitchell,   Paul D.; Hurley,   Terrance M.; Hellmich,   Richard L.
The EPA has imposed mandatory refuge requirements for Bt crops to prolong the efficacy of Bt. Growers have no economic incentive to plant the required refuge because refuge crops are on average less productive and more risky. This paper evaluates refuge insurance—insurance thatpays indemnities for yield losses on refuge due to insect damage—as a tool to increase grower compliance incentives. We determine actuarially fair insurance premiums, then evaluate the feasibility of private provision of refuge insurance and its impact on grower incentives to comply with refuge requirements. A private market for refuge insurance appears unlikely because our analysis suggests that even a 2 percent load on the actuarially fair premium makes growers unwilling to buy...
Tipo: Working or Discussion Paper
Palavras-chave: Bt corn; Crop insurance; Refuge crops; Pest-resistant management; European corn borer; Yield loss; Crop Production/Industries; Risk and Uncertainty.
Ano: 2000
URL: http://purl.umn.edu/18565

LINKAGES BETWEEN CROP INSURANCE AND PRE-HARVEST HEDGING
Provedor de dados: 31
Autores: Dhuyvetter,   Kevin C.; Kastens,   Terry L.
The impact pre-harvest hedging and crop insurance strategies have on expected revenue and associated risk as well as how producers' risk attitudes affect optimal strategies was analyzed for Kansas wheat farms.  No insurance, Catastrophic (CAT), Actual Production History (APH), and Crop Revenue Coverage (CRC) were considered.  Average revenue was similar across alternatives, but APH and CRC resulted in the least income variability.  Risk reduction effects of hedging were small and the advantage of CRC over APH decreases as hedging increases.  This historical study provides useful information; however, if future market conditions differ significantly from the past, optimal strategies may change.
Tipo: Journal Article
Palavras-chave: Crop insurance; Hedging; Revenue insurance; Risk management; Marketing; Risk and Uncertainty.
Ano: 1999
URL: http://purl.umn.edu/15133

PARAMETRIC AND NON-PARAMETRIC CROP YIELD DISTRIBUTIONS AND THEIR EFFECTS ON ALL-RISK CROP INSURANCE PREMIUMS
Provedor de dados: 31
Autores: Turvey,   Calum G.; Zhao,   Jinhua.
Normal, gamma and beta distributions are applied to 609 crop yield histories of Ontario farmers to determine which, if any, best describe crop yields.  In addition, a distribution free non-parametric kernel estimator was applied to the same data to determine its efficiency in premium estimation relative to the three parametric forms.  Results showed that crop yields are most likely to be described by a beta distribution but only for 50% of those tested.  In terms of efficiency in premium estimation, minimum error criteria supports use of a kernel estimator for premium setting.  However, this gain in efficiency comes at the expense of added complexity.
Tipo: Working or Discussion Paper
Palavras-chave: Crop insurance; Crop yield distributions; Kernel; Crop Production/Industries; Risk and Uncertainty.
Ano: 1999
URL: http://purl.umn.edu/34129

Crop Yield Skewness under the Law of Minimum Technology
Provedor de dados: 31
Autores: Hennessy,   David A.
A large empirical literature exists seeking to identify crop yield distributions. Consensus has not yet formed. This is in part because of data aggregation problems but also in part because no satisfactory motivation has been forwarded in favor of any distribution, including the normal. This article explores the foundations of crop yield distributions for the Law of the Minimum, or weakest-link, resource constraint technology. It is shown that heterogeneity in resource availabilities can increase expected yield. The role of stochastic dependence is studied for the technology. With independent, identical, uniform resource availability distributions the yield skew is positive, whereas it is negative whenever the distributions are normal. Simulations show how...
Tipo: Working or Discussion Paper
Palavras-chave: Beta-normal distribution; Crop insurance; Extreme value theory; Liebig technology; Limiting factors; Order statistics; Reliability; Weakest link; Crop Production/Industries; Research and Development/Tech Change/Emerging Technologies.
Ano: 2007
URL: http://purl.umn.edu/9238

Spatial Aggregation and Weather Risk Management
Provedor de dados: 31
Autores: Woodard,   Joshua D.; Garcia,   Philip.
Previous studies identify limited potential efficacy of weather derivatives in hedging agricultural exposures.  In contrast to earlier studies which investigate the problem at low levels of aggregation, we find using straight forward temperature contracts that better weather hedging opportunities exist at higher levels of spatial aggregation.  Aggregating production exposures reduces idiosyncratic (i.e. localized or region specific) risk, leaving a greater proportion of the total risk in the form of systemic weather risk which can be effectively hedged using weather derivatives.  The aggregation effect suggests that the potential for weather derivatives in agriculture may be greater than previously thought, particularly for aggregators of risk such as...
Tipo: Conference Paper or Presentation
Palavras-chave: Weather derivatives; Spatial aggregation; Corn; Yield risk; Crop insurance; Hedging; Risk and Uncertainty.
Ano: 2007
URL: http://purl.umn.edu/9832

ECONOMIC IMPACT OF SCAB WITH ALTERNATIVE RISK MANAGEMENT STRATEGY: THE CASE OF CROP QUALITY INSURANCE IN BARLEY
Provedor de dados: 31
Autores: Nganje,   William E.; Tiapo,   Napoleon M.; Wilson,   William W.
Managing quality risks, especially grain quality, has been a challenge facing farmers, grain merchandisers, and policymakers for many years.  With the advent of genetically modified organisms (GMOs), food safety, and identity preservation, this is even more challenging today.  In this paper, an equilibrium crop insurance model was developed and used to analyze the impact of quality risks on equilibrium coverage levels and risk premiums that suppliers of insurance and barley producers would be willing to provide when yield and revenue insurance instruments explicitly incorporate quality risks.  The asking price concept and sensitivity analysis were used to evaluate farmers' behavior after they purchase crop quality insurance and to provide guidance and...
Tipo: Working or Discussion Paper
Palavras-chave: Crop insurance; Equilibrium coverage levels; Fusarium Head Blight; Premium rates; Quality risks; Risk aversion; Crop Production/Industries.
Ano: 2002
URL: http://purl.umn.edu/23641

HEDGING CROP RISK WITH YIELD INSURANCE FUTURES AND OPTIONS
Provedor de dados: 31
Autores: Mahul,   Olivier; Vermersch,   Dominique.
This paper analyses the optimal hedging decisions for risk-averse producers facing crop risk, assuming crop yield insurance futures and options can be used. The first-best optimal hedge requires a futures position or an option position proportionate to the individual beta depending on whether the financial markets are perceived unbiased or biased. Using yield data for a sample of wheat producers in France, the producers' hedge ratios are derived. These new hedging instruments are more effective to reduce farm yield variability than the individual yield contracts, except if the individual yield guarantee is at least equal to the individual average yield.
Tipo: Conference Paper or Presentation
Palavras-chave: Crop insurance; Hedging position; Incomplete markets; Marketing; Risk and Uncertainty.
Ano: 1999
URL: http://purl.umn.edu/21672

Characteristics and Risk Management Needs of Limited-Resource and Socially Disadvantaged Farmers
Provedor de dados: 31
Autores: Dismukes,   Robert; Harwood,   Joy L.; Bentley,   Susan E.
Small U.S. farms and those run by socially disadvantaged minority operators tend not to purchase insurance or to participate in insurance-type programs operated by USDA. This report traces the lack of use of such risk management measures to several characteristics of such farmers, who include females, blacks, American Indians, Asian/Pacific Islanders, and operators of Spanish origin. These farmers tend, more than the typical U.S. farm, to raise livestock rather than crops, and there are no government-sponsored insurance-type programs for livestock.
Tipo: Report
Palavras-chave: Risk management; Crop insurance; Limited-resource farmers; Limited-opportunity farmers; Small farms; Socially disadvantaged farmers; Farm Management; Risk and Uncertainty.
Ano: 1997
URL: http://purl.umn.edu/33622

Asymmetric Information in the Market for Yield and Revenue Insurance Products
Provedor de dados: 31
Autores: Makki,   Shiva S.; Somwaru,   Agapi.
This report analyzes farmers' choice of crop insurance contracts and tests for the presence of asymmetric information in the market for multiple yield and revenue insurance products. Farmers' risk characteristics, their level of income, and the cost of insurance significantly affect their choices of yield and revenue insurance products as well as their selections of alternative coverage levels. Empirical analysis indicates that, in the presence of asymmetric information, high-risk farmers are more likely to select revenue insurance contracts and higher coverage levels. The results also indicate that premium rates do not accurately reflect the likelihood of losses, implying asymmetrical information in the crop insurance market.
Tipo: Report
Palavras-chave: Asymmetric information; Adverse selection; Crop insurance; Revenue insurance; Risk management; Risk and Uncertainty.
Ano: 2001
URL: http://purl.umn.edu/33587

Crop Insurance, Disaster Payments and Land Use Change: The Effect of Sodsaver on Incentives for Grassland Conversion
Provedor de dados: 31
Autores: Claassen,   Roger; Cooper,   Joseph C.; Carriazo,   Fernando.
Subsidized crop insurance may encourage conversion of native grassland to cropland. The Sodsaver provision of the 2008 farm bill could deny crop insurance on converted land in the Prairie Pothole states for 5 years. Supplemental Revenue Assistance payments, which are linked to crop insurance purchases, could also be withheld. Using representative farms, we estimate that Sodsaver would reduce expected crop revenue by up to 8% and expected net return by up to 20%, while increasing the standard deviation of revenue by as much as 6% of market revenue. Analysis based on elasticities from the literature suggests that Sodsaver would reduce grassland conversion by 9% or less.
Tipo: Journal Article
Palavras-chave: Bootstrap; Crop insurance; Grassland; Joint densities; Sodsaver; Supplemental Revenue Assistance; Agricultural and Food Policy; Production Economics; Risk and Uncertainty; Q2.
Ano: 2011
URL: http://purl.umn.edu/104623

Performance of Crop Insurance Scheme in Udaipur District of Rajasthan
Provedor de dados: 31
Autores: Rathore,   Vikram Singh; Burark,   S.S.; Jain,   H.K.
farms in Salumber tehsil of Udaipur district during 2008-09. The study has revealed that farm income per family is higher on beneficiary farms as compared to non-beneficiary farms. The progress of crop insurance scheme in Rajasthan has been found positive, as is evidenced through compound and linear growth rates. In the Udaipur district, the progress of crop insurance scheme has been found positive, except the claim passed to the number of farmers and amount of sum insured. At the overall level, the total area insured under the crop insurance programme has been only about 45 per cent of the total cropped area of the beneficiary farms. Use of inputs such as human and bullock labour, seed, manures, fertilizers, pesticides, etc. has been found significantly...
Tipo: Journal Article
Palavras-chave: Crop insurance; Insurance premium; Compensation; Agricultural and Food Policy; Q15; Q18; Q19.
Ano: 2011
URL: http://purl.umn.edu/109411

Efficiency Costs of Subsidy Rules for Crop Insurance
Provedor de dados: 31
Autores: Wang,   H. Holly; Hanson,   Steven D.; Black,   J. Roy.
Participation in federal crop insurance programs has been encouraged through premium subsidies. The current subsidy depends on contract features as well as coverage levels. This type of subsidy rule causes farmers to choose contract designs and coverages that are not efficient for managing risk, in order to capture subsidy. Farmers are found to be as well off with a flat subsidy that is up to 25% less than the value of the current regressive proportional subsidy.
Tipo: Journal Article
Palavras-chave: Crop insurance; Futures; Risk management; Subsidy; Risk and Uncertainty.
Ano: 2003
URL: http://purl.umn.edu/30717

INSTABILITY AND RISK IN U.S. AGRICULTURE
Provedor de dados: 31
Autores: Goodwin,   Barry K.
The U.S. government has been extensively involved in providing income support and risk management policies for U.S. farmers over the last 65 years. Risk management policies have included crop insurance, disaster relief, and in recent years, revenue insurance. Recent policy changes signaled an intention on the part of policy makers, at least in principle, to move U.S. agriculture toward the free market. Low commodity prices and localized droughts, however, have brought about renewed calls for direct income assistance. In this paper, we discuss the role of the government in providing policies to address income shortfalls and risk in agriculture. Problems and inconsistencies with policies are identified and discussed.  Implications for international markets...
Tipo: Journal Article
Palavras-chave: Agriculture; Crop insurance; Government policy; Risk management; Agricultural and Food Policy; Risk and Uncertainty.
Ano: 2000
URL: http://purl.umn.edu/14700

DEMAND FOR CROP INSURANCE BY ORGANIC CORN AND SOYBEAN  FARMERS IN THREE MAJOR PRODUCING STATES
Provedor de dados: 31
Autores: Singerman,   Ariel; Hart,   Chad E.; Lence,   Sergio H.
A survey of organic grain and oilseed producers in Iowa, Minnesota and Wisconsin was conducted to collect information about their demographic characteristics, production and price risk management strategies, yields and losses, and crop insurance decisions. The data are analyzed using a discrete choice model to establish which variables influence organic producers’ decision of whether to purchase crop insurance and also which ones affect the insurance product choice when applicable. The study describes the risk profiles of organic producers, and analyzes whether significant variations exist between organic and conventional methods of production so as to quantitatively determine the differential production risk associated with organic production. This...
Tipo: Conference Paper or Presentation
Palavras-chave: Crop insurance; Organic farming; Organic production; Agricultural and Food Policy; Risk and Uncertainty; Q18.
Ano: 2010
URL: http://purl.umn.edu/60935

The Application of Farm Programs to Commercial Fisheries: The Case of Crop Insurance for the Bristol Bay Commercial Salmon Fisheries
Provedor de dados: 31
Autores: Greenberg,   Joshua A.; Herrmann,   Mark; Geier,   Hans; Hamel,   Charles.
Under the direction of the Agricultural Risk Protection Act of 2000, the U.S. Congress proposed a crop insurance program for the Bristol Bay, Alaska, commercial salmon fishery. This study examines the feasibility of extending crop insurance to this commercial fishery. The specific focus of this analysis is on differences between this commercial capture fishery and agricultural enterprises in the context of property rights and producer control. Findings show that differences between this commercial fishery and agricultural enterprises would require substantial modifications to existing crop insurance programs. Furthermore, it is recommended that the consideration of extending crop insurance be delayed until this fishery is rationalized.
Tipo: Journal Article
Palavras-chave: Bristol Bay; Commercial fisheries; Crop insurance; Farm programs; Property rights; Risk management; Salmon; Agricultural and Food Policy; Risk and Uncertainty.
Ano: 2004
URL: http://purl.umn.edu/59588

A Cost Function Analysis of Crop Insurance Moral Hazard and Agricultural Chemical Use
Provedor de dados: 31
Autores: Liang,   Yan; Coble,   Keith H.
This paper employs a cost function analysis method to investigate the existence of moral hazard in cotton buy-up insurance. The trans-log cost function estimates of the own-price elasticity of fertilizer, herbicide, and insecticide is -0.222, -0.143, and -0.121, respectively for Mississippi cotton production. Our results found statistically significant relationship between per acre direct cost and cotton buy-up insurance for year 2001 and 2005 in Mississippi. Our results also indicate that moral hazard can either decrease or increase agricultural input usage depending specific production condition in an individual year.  But in general the results support effects smaller than anecdotal evidence would suggest.
Tipo: Conference Paper or Presentation
Palavras-chave: Crop insurance; Moral hazard; Agricultural input use; Cost function analysis; Cotton; Agribusiness; Agricultural and Food Policy; Demand and Price Analysis; Production Economics; Risk and Uncertainty.
Ano: 2009
URL: http://purl.umn.edu/49485

POTENCIALIDADE DO SEGURO RURAL NO BRASIL
Provedor de dados: 31
Autores: Jardim,   Ana Lucia Carvalho; Ferreira,   Leo da Rocha.
O objetivo desta comunicação é relatar o andamento de uma pesquisa que visa avaliar a eficiência econômica de programas de seguro rural no contexto brasileiro, usando como base o atual projeto do governo de criação do Fundo de Catástrofe. A potencialidade do seguro rural no Brasil é discutida e avaliada tendo como pano de fundo a atual política agrícola brasileira, fundamentada principalmente no incentivo ao crédito rural. A intenção é verificar a eficiência dos gastos do governo com as políticas voltadas ao setor agropecuário. Neste sentido, são apresentadas e discutidas as experiências internacionais que se utilizam o seguro rural ao produtor, em detrimento dos subsídios diretos ao crédito. O artigo conclui que o Fundo de Catástrofe poderá permitir não...
Tipo: Conference Paper or Presentation
Palavras-chave: Seguro rural; Política agrícola; Fundo de catástrofe; Crop insurance; Agricultural policy; Catastrophic fund; Agricultural and Food Policy; Risk and Uncertainty.
Ano: 2008
URL: http://purl.umn.edu/109766

Using participating and financial contracts to insure catastrophe risk: Implications for crop risk management
Provedor de dados: 31
Autores: Enjolras,   Geoffroy; Kast,   Robert.
High losses generated by natural catastrophes reduce the availability of insurance. Among the ways to manage risk, the subscriptions of participating and non-participating contracts respectively permit to implement the two major principles in risk allocation: the mutuality and the transfer principles. Decomposing a global risk into its idiosyncratic and systemic components, we show that: the participating contract hedges the individual losses under a variable premium and the systemic risk is covered with a non-participating contract under a fixed premium. Based on Doherty and Schlesinger (2002) and Mahul (2002) approaches, our model replaces the non-participating contract by a financial one based on an index closely correlated to the systemic risk, under a...
Tipo: Conference Paper or Presentation
Palavras-chave: Catastrophe risk; Crop insurance; Optimal hedging; Securitization; Crop Production/Industries; Risk and Uncertainty.
Ano: 2007
URL: http://purl.umn.edu/9268

Preference for Risk Management Information Sources: Implications for Extension and Outreach Programming
Provedor de dados: 31
Autores: Rejesus,   Roderick M.; Knight,   Thomas O.; Jaramillo,   Mauricio; Coble,   Keith H.; Patrick,   George F.; Baquet,   Alan E.
This article examines farmers’ preferences for various risk management information sources. Our results suggest that information from risk management experts, in-depth materials studied on their own, and popular press outlets tend to be preferred and are ranked highly by producers. Using a regression model to investigate farmer/farm attributes that affect preference for a particular risk management information source, we find that younger farmers with college education, higher leverage, assets greater than $1 million, risk-loving attitudes, and who have used professional services (marketing consultants) tend to prefer information from risk management experts, the Internet, and marketing clubs/other producers. On the other hand, producers who prefer...
Tipo: Journal Article
Palavras-chave: Crop insurance; Extension; Information sources; Outreach; Risk management; Risk and Uncertainty.
Ano: 2008
URL: http://purl.umn.edu/44742

Get a GRIP: Should Area Revenue Coverage Be Offered through the Farm Bill or as a Crop Insurance Program?
Provedor de dados: 31
Autores: Paulson,   Nicholas D.; Babcock,   Bruce A.
The successful expansion of the U.S. crop insurance program has not eliminated ad hoc disaster assistance. An alternative currently being explored by members of Congress and others in preparation of the 2007 farm bill is to simply remove the "ad hoc" part of disaster assistance programs by creating a standing program that would automatically funnel aid to hard-hit regions and crops. One form such a program could take can be found in the area yield and area revenue insurance programs currently offered by the U.S. crop insurance program. The Group Risk Plan (GRP) and Group Risk Income Protection (GRIP) programs automatically trigger payments when county yields or revenues, respectively, fall below a producer-elected coverage level. The per-acre taxpayer...
Tipo: Working or Discussion Paper
Palavras-chave: Area revenue insurance; Commodity programs; Crop insurance; Group Risk Income Protection; Agricultural and Food Policy; Risk and Uncertainty.
Ano: 2007
URL: http://purl.umn.edu/18333

Nutrient Best Management Practice Insurance and Farmer Perceptions of Adoption Risk
Provedor de dados: 31
Autores: Mitchell,   Paul D.
This paper explores the effect farmer perceptions concerning how best management practice (BMP) adoption changes the profit distribution have on BMP adoption incentives and the  potential for insurance to  increase these incentives.  Adoption indifference curves illustrate the effect of farmer perceptions on BMP adoption incentives and the potential for insurance to expand the set of perceptions consistent with adoption.  Empirical analysis quantifies these conceptual results for nutrient BMP insurance, a new policy available to corn farmers as part of a USDA-Risk Management Agency pilot program in four states.  Results indicate that nutrient BMP insurance can have economically relevant effects on farmer adoption incentives.
Tipo: Journal Article
Palavras-chave: Adoption indifference curves; Crop insurance; Fertilizer; Green insurance; D8; Q12; Q16; Q21.
Ano: 2004
URL: http://purl.umn.edu/43460

Modeling Stochastic Crop Yield Expectations with a Limiting Beta Distribution
Provedor de dados: 31
Autores: Hennessy,   David A.
The use of plausible stochastic price processes in price risk analysis has allowed advances not seen in crop yield risk analysis. This study develops a stochastic process for yield modeling and risk management. The Pólya urn process is an internally consistent dynamic representation of yield expectations over a growing season that accommodates agronomic events such as growing degree days. The limiting distribution is the commonly used beta distribution. Binomial tree analysis of the process allows us to explore hedging decisions and crop valuation. The method is empirically flexible to accommodate alternative assumptions on the growing environment, such as intra-season input decisions.
Tipo: Journal Article
Palavras-chave: Crop abandonment; Crop insurance; Derivative analysis; Growing degree days; Pólya’s urn; Stochastic process; Crop Production/Industries.
Ano: 2011
URL: http://purl.umn.edu/105548

The Impact of the Average Crop Revenue Election (ACRE) Program on the Effectiveness of Crop Insurance
Provedor de dados: 31
Autores: Hong,   Sung Wook; Power,   Gabriel J.; Vedenov,   Dmitry V.
This paper analyzes the effect of the ACRE program adopted in the final version of the 2007 Farm Bill on the risk-reducing effectiveness of insurance products. To the best of our knowledge this is a first attempt to analyze the effect of the ACRE program on the risk management decisions of crop producers. In particular, we compare the risk-reducing effectiveness of the two most common insurance contracts — APH and CRC — under the provisions of the 2002 Farm Bill and under ACRE program for representative cotton producer in Texas and corn producer in Illinois. These particular crop/region combinations are selected so as to represent situations of low and high price-yield correlations, respectively.
Tipo: Conference Paper or Presentation
Palavras-chave: Crop insurance; Farm Bill; ACRE; Agribusiness; Agricultural and Food Policy; Agricultural Finance; Crop Production/Industries; Risk and Uncertainty.
Ano: 2009
URL: http://purl.umn.edu/46755

FARM RISK POLICY AT A CROSSROAD
Provedor de dados: 31
Autores: Coble,   Keith H.
Legislatively mandated declines in government program payments have coincided with sharp declines in most major crop commodity prices. Thus, a debate has begun about the direction of future farm policy. The debate has been largely expressed in terms of a "safety net" for producers. This paper address several economic issues associated with proposals to enhance the agricultural "safety net."  The case is made that crop insurance reform cannot satisfy the desire for above-market price supports. Characteristics required for an insurable risk are discussed, as are the interactions between public and private risk-management tools.
Tipo: Journal Article
Palavras-chave: Agricultural policy; Crop insurance; Risk; Agricultural and Food Policy; Risk and Uncertainty.
Ano: 2000
URL: http://purl.umn.edu/14704

Efficiency of Weather Derivatives as Primary Crop Insurance Instruments
Provedor de dados: 31
Autores: Vedenov,   Dmitry V.; Barnett,   Barry J.
This study analyzes efficiency of weather derivatives as primary insurance instruments for six crop reporting districts that are among the largest producers of corn, cotton, and soybeans in the United States. Specific weather derivatives are constructed for each crop/district combination based on analysis of several econometric models. The performance of the designed weather derivatives is then analyzed both in- and out-of-sample. The primary findings suggest that the optimal structure of weather derivatives varies widely across crops and regions, as does the risk-reducing performance of the optimally designed weather derivatives. Further, optimal weather derivatives required rather complicated combinations of weather variables to achieve reasonable fits...
Tipo: Journal Article
Palavras-chave: Agricultural risk management; Crop insurance; Index insurance; Weather derivatives; Risk and Uncertainty.
Ano: 2004
URL: http://purl.umn.edu/30916

On the Systemic Nature of Weather Risk
Provedor de dados: 31
Autores: Xu,   Wei; Filler,   Gunther; Odening,   Martin; Okhrin,   Ostap.
Systemic weather risk is a major obstacle for the formation of private (nonsubsidized) crop insurance. This paper explores the possibility of spatial diversification of insurance by estimating the joint occurrence of unfavorable weather conditions in different locations. For that purpose copula methods are employed that allow an adequate description of stochastic dependencies between multivariate random variables. The estimation procedure is applied to weather data in Germany. Our results indicate that indemnity payments based on temperature as well as on cumulative rainfall show strong stochastic dependence even at a national scale. Thus the possibility to reduce risk exposure by increasing the trading area of the insurance is limited. Irrespective of...
Tipo: Conference Paper or Presentation
Palavras-chave: Weather risk; Crop insurance; Copula; Agribusiness; Agricultural Finance; Crop Production/Industries; Risk and Uncertainty; C14; Q19.
Ano: 2009
URL: http://purl.umn.edu/51426

Mitigating Cotton Revenue Risk Through Irrigation, Insurance, and Hedging
Provedor de dados: 31
Autores: Barham,   E. Hart Bise; Robinson,   John R.C.; Richardson,   James W.; Rister,   M. Edward.
This study focuses on managing cotton production and marketing risks using combinations of irrigation levels, put options (as price insurance), and crop insurance. Stochastic cotton yields and prices are used to simulate a whole-farm financial statement for a 1,000 acre furrow irrigated cotton farm in the Texas Lower Rio Grande Valley under 16 combinations of risk management strategies. Analyses for risk-averse decision makers indicate that multiple irrigations are preferred. The benefits to purchasing put options increase with yields, as they are more beneficial when higher yields are expected from applying more irrigation applications. Crop insurance is strongly preferred at lower irrigation levels.
Tipo: Journal Article
Palavras-chave: Cotton; Crop insurance; Irrigation; Options; Puts; Risk; Simulation; Stochastic efficiency with respect to a function; Farm Management; Risk and Uncertainty; D81; Q12; Q15.
Ano: 2011
URL: http://purl.umn.edu/117946

Case Studies on the Use of Crop Insurance in Managing Risk
Provedor de dados: 31
Autores: Gloy,   Brent A.; Staehr,   A. Edward.
Managing the risk associated with farming is challenging. Fortunately, farmers have a variety of risk management tools at their disposal. This series of case studies examines how crop insurance can be used to manage some of the risks faced by farmers. The examples illustrate how crop insurance purchases would impact the returns generated to a farming enterprise. While the examples cover a variety of commodities and insurance products, they do not consider every possible risk that might arise. Likewise, they do not consider all of the possible financial situations that might be experienced by a farmer. Instead, they focus on highlighting how crop insurance impacts the profitability of the farm. Companion spreadsheets are available for all of the examples so...
Tipo: Report
Palavras-chave: Managing Risk; Crop insurance; Apple production; Grape production; Soybeans; Forage production; Agribusiness; Crop Production/Industries; Financial Economics.
Ano: 2009
URL: http://purl.umn.edu/49004

Revenue Protection for Organic Producers: Too Much or Too Little
Provedor de dados: 31
Autores: Singerman,   Ariel; Hart,   Chad E.; Lence,   Sergio H.
A framework is developed to examine organic crop insurance established by the Risk Management Agency (RMA). Given that RMA links organic and conventional crop prices, the model is calibrated to reflect both markets to illustrate the impacts that pricing has on insurance coverage. Findings indicate that at the 75% coverage level, RMA's fixed price factor implies an effective coverage ranging from 45% to 106% depending on the ratio of planting-time organic to conventional market prices. Results suggest RMA's program is likely to induce adverse selection, because the nominal coverage level is likely to substantially deviate from the effective coverage.
Tipo: Presentation
Palavras-chave: Crop insurance; Organic agriculture; Agricultural and Food Policy; Q18.
Ano: 2012
URL: http://purl.umn.edu/124370

Análise espacial da produtividade agrícola no Estado do Paraná: implicações para o seguro agrícola
Provedor de dados: 31
Autores: Ozaki,   Vitor Augusto.
This paper analyses the spatial pattern of the agricultural yield data. Using the spatial statistics, it is possible to estimate some parameters of the semivariogram to study the problem of the systemic risk, which has great implications for the crop insurance program in Brazil. In particular, the “range” parameter was estimated. This parameter measures the distance, in which the spatial correlation tends to zero. For the empirical analysis, county yield data was used provided by IBGE, for soybean and corn, in the state of Paraná, through 1990 and 2002. The results showed that there is spatial dependence in every year analysed, going to zero in relatively long distances (in km).
Tipo: Journal Article
Palavras-chave: Crop insurance; Systemic risk; Spatial correlation; Semivarioram.; Agribusiness; Q19.
Ano: 2008
URL: http://purl.umn.edu/61239

The Effects of Transitional Yields on Adverse Selection in Crop Insurance
Provedor de dados: 31
Autores: Walters,   Cory G.; Shumway,   C. Richard; Chouinard,   Hayley H.; Wandschneider,   Philip R.
Transitional yields based on county average can be used by producers as the basis to obtain crop insurance on fields that have not previously produced the crop.  Using field-level crop insurance contract data for several crops in five different growing regions we examine the impact of this asymmetric information on adverse selection.  Our results indicate that adverse selection does exist from the use of transitional yields and that it is crop specific but not land-quality specific.
Tipo: Conference Paper or Presentation
Palavras-chave: Adverse selection; Crop insurance; Transitional yields; Risk and Uncertainty; Q18.
Ano: 2007
URL: http://purl.umn.edu/9849

Introduction of Weather Index Insurance in Ukraine - Obstacles and Opportunities
Provedor de dados: 31
Autores: Shynkarenko,   Roman.
Agricultural insurance in Ukraine is mostly offered on the basis of traditional products including PMCI, named perils and single peril coverage. The index concept was introduced in 2001 though until 2005 the insurance companies provided index crop insurance through area-based yield index program. The first weather index transactions (lack of rainfall index) were executed in 2005 for winter wheat at the South of Ukraine. The pilot project on weather index insurance was conducted by the World Bank organizations (IFC Agribusiness Development project and Commodity Risk Management Group) in 2003-2006. The project team proposed assistance in design and promotion of weather index insurance products for agricultural applications. Unfortunately, due to various...
Tipo: Conference Paper or Presentation
Palavras-chave: Crop insurance; Weather index; Risk management; Risk mitigation; Crop insurance; Farm management; Risk and Uncertainty.
Ano: 2007
URL: http://purl.umn.edu/9244

LIMITATIONS OF VALUE-AT-RISK (VAR) FOR BUDGET ANALYSIS
Provedor de dados: 31
Autores: Gustafson,   Cole R.
Value-at-risk (VaR) is increasingly being applied to problems in agriculture, especially valuation of crop insurance and agricultural lending risk exposure.  VaR conveys the probability that losses exceeding a threshold will likely occur within a specified timeframe.  However, it does not provide the expected value of losses, should they happen.  When determining risk exposure for budget analysis, this latter amount is of keen interest.  Expected tail loss (ETL) methods are developed and compared with VaR.
Tipo: Working or Discussion Paper
Palavras-chave: Risk; Value-at-Risk; Expected Tail Loss; Crop insurance; Loan loss; Agricultural Finance; Risk and Uncertainty.
Ano: 2004
URL: http://purl.umn.edu/23612

The Relationship Between the ACRE Program and Crop Insurance (PowerPoint)
Provedor de dados: 31
Autores: Paulson,   Nicholas D.; Schnitkey,   Gary D.; Zulauf,   Carl R.
Tipo: Conference Paper or Presentation
Palavras-chave: ACRE program; Crop insurance; Risk; Risk and Uncertainty.
Ano: 2009
URL: http://purl.umn.edu/48906

Average Crop Revenue Election (ACRE) Program or Traditional Government Payment Programs: What Factors Matter?
Provedor de dados: 31
Autores: Chen,   Yunguang; Wang,   H. Holly; Patrick,   George F.
Rankings of different risk management portfolios including Average Crop Revenue Election (ACRE), traditional government payment programs, crop insurance and hedging in futures; and optimal choices of insurance coverage levels and hedge ratios are evaluated for a representative central Indiana corn farm, using Monte Carlo simulation and optimization of expected utilities. The changes of preference between ACRE and traditional government programs under comprehensive scenarios of price and yield risks are studied. Also, Interactions between ACRE and other risk management instruments are examined, and government costs and risk management efficiencies between ACRE and traditional government programs are compared. The results show a strong preference of ACRE for...
Tipo: Conference Paper or Presentation
Palavras-chave: ACRE; Farm Bill; Crop insurance; Willingness to pay; Government expenditure; Government programs; Agricultural and Food Policy; Agricultural Finance; Risk and Uncertainty.
Ano: 2010
URL: http://purl.umn.edu/61490

Late Planting Decisions with Crop Insurance: Decision Guidelines for Michigan Farmers in Spring 2011
Provedor de dados: 31
Autores: Betz,   Roger; Schweikhardt,   David B.; Black,   J. Roy; Hilker,   James H.
Michigan has had unusually wet planting conditions in 2011, leading to substantial acreage that has not been planted at this late date. Farmers who purchased crop insurance have many options available to them. This paper addresses the major crop insurance decisions that farmers will face during the next 30 days.
Tipo: Working or Discussion Paper
Palavras-chave: Crop insurance; Prevented planting; Risk management; Farm management; Corn returns; Soybean returns; Agricultural and Food Policy; Crop Production/Industries; Farm Management; Risk and Uncertainty.
Ano: 2011
URL: http://purl.umn.edu/108905

Crop insurance market development in a transition economy: The case of Kazakhstan
Provedor de dados: 31
Autores: Heidelbach,   Olaf; Bokusheva,   Raushan.
We analyze the current state and future requirements of an agricultural income stabilization mechanism in a transition country – namely, the crop insurance system in Kazakhstan. Three objectives will be pursued: First, factors influencing the development of the crop insurance market will be identified. Second, insurance’s capabilities to efficiently stabilize income under transition circumstances will be evaluated. Finally, recommendations for developing crop insurance as an effective income stabilization tool will be provided. Results indicate that the prevailing institutional framework for establishing a sustainable crop insurance system is rather weak, and available insurance products are not preventing the problem of asymmetric information to a...
Tipo: Conference Paper or Presentation
Palavras-chave: Risk-management; Crop insurance; Institutions; Mathematical programming; Kazakhstan; Agricultural Finance; Risk and Uncertainty; D81; D82; G22; Q14.
Ano: 2009
URL: http://purl.umn.edu/51614

Producer Heterogeneity in Crop Insurance Product Decisions within Major Corn Producing States (PowerPoint)
Provedor de dados: 31
Autores: Adhikari,   Shyam; Belasco,   Eric J.; Knight,   Thomas O.
PowerPoint presentation
Tipo: Conference Paper or Presentation
Palavras-chave: Crop insurance; Risk; Decision-making; Risk and Uncertainty; D81.
Ano: 2009
URL: http://purl.umn.edu/48902

The SURE Program and Its Interaction with Other Federal Farm Programs
Provedor de dados: 31
Autores: Ubilava,   David; Barnett,   Barry J.; Coble,   Keith H.; Harri,   Ardian.
We investigate potential effects of the Supplemental Revenue Assistance Payments (SURE) program introduced in the 2008 Farm Bill. Results suggest little impact on optimal crop insurance purchase decisions, though the SURE program does seem to provide an incentive for mid-level insurance coverage. For producers in the price counter-cyclical payment (PCCP) program, SURE payments are actually higher (lower) when commodity prices are high (low). This is not the case for producers in the Average Crop Revenue Election (ACRE) program.
Tipo: Article
Palavras-chave: Crop insurance; Disaster assistance; Farm bill; SURE; Agricultural and Food Policy; Farm Management; Public Economics; Resource /Energy Economics and Policy.
Ano: 2011
URL: http://purl.umn.edu/119184

Modeling Exit and Entry of Farmers in a Crop Insurance Program
Provedor de dados: 31
Autores: Cabas,   Juan H.; Leiva,   Akssell J.; Weersink,   Alfons.
This paper examines the factors influencing farmer participation in crop insurance schemes, but unlike previous studies that focus on total demand, participation is disaggregated into entrants and those exiting. Modeling entry and exit decisions separately illustrates that the effect of a given variable is often muted by aggregation. In addition, the approach in this paper distinguishes between price and yield variables rather than total returns and is consequently able to demonstrate that price variables are particularly important for farmers considering enrolling in crop insurance, while yield variables and other risk management opportunities are more important for farmers who have been in the program but are deciding to exit. The result suggests that...
Tipo: Journal Article
Palavras-chave: Crop insurance; Entry and exit; Panel data; Risk and Uncertainty.
Ano: 2008
URL: http://purl.umn.edu/44741

Crop Yield Skewness and the Normal Distribution
Provedor de dados: 31
Autores: Hennessy,   David A.
Empirical studies point to negative crop yield skewness, but the literature provides few clear insights as to why. This paper formalizes three points on the matter. Statistical laws on aggregates do not imply a normal distribution. Whenever the weather-conditioned mean yield has diminishing marginal product with respect to a weather-conditioning index, then there is a disposition toward negative yield skewness. This is because high marginal product in bad weather stretches out the yield distribution's left tail relative to that for weather. For disaggregated yields, unconditional skewness is decomposed into weather-conditioned skewness plus two other terms and each is studied in turn.
Tipo: Journal Article
Palavras-chave: Conditional distribution; Crop insurance; Negative skewness; Normal distribution; Statistical laws; Crop Production/Industries; Risk and Uncertainty.
Ano: 2009
URL: http://purl.umn.edu/50084

Weather Derivatives, Spatial Aggregation, and Systemic Risk: Implications for Reinsurance Hedging
Provedor de dados: 31
Autores: Woodard,   Joshua D.; Garcia,   Philip.
Previous studies identify limited potential efficacy of weather derivatives in hedging agricultural exposures. In contrast to earlier studies which investigate the problem at low levels of aggregation, we find that better weather hedging opportunities may exist at higher levels of spatial aggregation. Aggregating production exposures reduces idiosyncratic risk, leaving a greater proportion of the total risk in the form of systemic weather risk which can be effectively hedged using relatively simple weather derivatives. The aggregation effect suggests that the potential for weather derivatives in agriculture may be greater than previously thought, particularly for aggregators of risk such as reinsurers.
Tipo: Journal Article
Palavras-chave: Crop insurance; Hedging; Reinsurance; Spatial aggregation; Systemic risk; Weather derivatives; Risk and Uncertainty.
Ano: 2008
URL: http://purl.umn.edu/36705

EMPIRICAL ISSUES IN CROP REINSURANCE DECISIONS
Provedor de dados: 31
Autores: Nayak,   Govindaray; Turvey,   Calum G.
This paper investigates the role of reinsurance in the managing the liquidity or reserve fund risks facing a crop insurer. Using 31 years of data, combined with Monte Carlo simulation the paper illustrates a mechanism for calculating reinsurance premiums and determining the post insurance risk profile. The insured event is over a range of loss ratios, and the focus of the paper is on reserve fund balances.
Tipo: Conference Paper or Presentation
Palavras-chave: Reinsurance; Crop insurance; Agricultural risks; Crop Production/Industries; Risk and Uncertainty.
Ano: 1999
URL: http://purl.umn.edu/21612

THE POTENTIAL FOR REVENUE INSURANCE POLICIES IN THE SOUTH
Provedor de dados: 31
Autores: Skees,   Jerry R.; Harwood,   Joy L.; Somwaru,   Agapi; Perry,   Janet E.
The 1996 Farm Act and the 1994 Crop Insurance Reform Act are recent examples of policy changes that have increased risks for U.S. farmers. New products are emerging to help farmers manage risks. This article examines some of the policy changes, farmer responses, and new risk-sharing products. The focus turns to the new revenue insurance products and their potential in the South. While there are reasons to believe revenue insurance should be attractive in the South, any revenue products that use existing crop insurance rates will face difficulties since poor actuarial performance in the South has resulted in relatively high rates.
Tipo: Journal Article
Palavras-chave: Agricultural policy; Crop insurance; Revenue insurance; Risk; Southern agriculture; Risk and Uncertainty.
Ano: 1998
URL: http://purl.umn.edu/15093

Hedging Price Risk in the Presence of Crop Yield and Revenue Insurance
Provedor de dados: 31
Autores: Mahul,   Olivier.
The demand for hedging against price uncertainty in the presence of crop yield and revenue insurance contracts is examined for two French wheat farms. The rationale for the use of options in addition to futures is first highlighted through the characterization of the first-best hedging strategy in the expected utility framework. It is then illustrated using numerical simulations. The presence of options is shown to allow the insured producer to adopt a more speculative position on the futures market. Futures are shown to be performing, in terms of willingness to receive. Options are weakly performing when futures markets are unbiased, while they are more performing when futures markets are biased.
Tipo: Conference Paper or Presentation
Palavras-chave: Crop insurance; Hedging; Producer welfare; Simulation; Risk and Uncertainty.
Ano: 2002
URL: http://purl.umn.edu/24881

PRODUCTION RISK AND CROP INSURANCE IN MALTING BARLEY: A STOCHASTIC DOMINANCE ANALYSIS
Provedor de dados: 31
Autores: Wilson,   William W.; Gustafson,   Cole R.; Dahl,   Bruce L.
Malt barley is an important specialty crop in the Northern Plains and growers mitigate risk with federally subsidized crop insurance and production contracts.  However, growers face considerable risk due to "coverage gaps" in crop insurance that result in uncertain indemnity payments due to uncertainty of their crop meeting contract specifications.  A stochastic dominance model is developed to evaluate alternative risk efficient strategies for growers with differing risk attitudes and production practices (irrigation vs. dryland).  Results show that efficient choices are highly dependent on risk attitudes for dryland growers, but not irrigated growers.  Sensitivities with respect to acceptance risk and level of crop insurance subsidization are presented....
Tipo: Working or Discussion Paper
Palavras-chave: Crop insurance; Malting barley; Stochastic dominance; Stochastic efficiency; Crop Production/Industries; Risk and Uncertainty.
Ano: 2006
URL: http://purl.umn.edu/23561

Risk-Reducing Effectiveness of Revenue versus Yield Insurance in the Presence of Government Payments
Provedor de dados: 31
Autores: Vedenov,   Dmitry V.; Power,   Gabriel J.
Government farm support programs such as Loan Deficiency Payments (LDP) and Counter-Cyclical Payments (CCP) have payoff structures that effectively make them costless price insurance instruments. A combination of these payments with yield insurance may provide a viable alternative to revenue insurance. This paper finds that, contrary to expectations, the revenue product analyzed is uniformly superior to yield insurance under both current (2002) and proposed (2008) Farm Bill structures of government payments. Given minor adjustments, however, yield insurance combined with government payments can provide more effective risk management than revenue insurance in production areas with low yield–price correlation.
Tipo: Journal Article
Palavras-chave: Copulas; Crop insurance; Farm bill; Government payments; Agribusiness; Agricultural and Food Policy; Crop Production/Industries; Q14; Q18.
Ano: 2008
URL: http://purl.umn.edu/46982

The Main Determinants of Insurance Purchase: An Empirical Study on Crop Insurance Policies in France
Provedor de dados: 31
Autores: Enjolras,   Geoffroy; Sentis,   P.
Using data for 2002-2005 on a representative survey of French farms (FADN-RICA), we investigate the different factors that lead farmers to insure against crop risk. Our analysis takes into account a mix of both standard individual, financial and agricultural criteria. Cross-sectional and longitudinal analyses as well as logistic regressions underline the main differences between insured and non-insured farms. Compared to non-insured farms, we find that insured farms present greater financial and agricultural sizes, a more diversified production and have been motivated by the occurrence of recent catastrophic climatic events. Although essential in the cross-sectional analysis, the influence of financial parameters in the decision to insure is mitigated. On...
Tipo: Conference Paper or Presentation
Palavras-chave: Insurance; Demand; Crop insurance; Catastrophe risk; Risk and Uncertainty.
Ano: 2008
URL: http://purl.umn.edu/44395

RISK MANAGEMENT POTENTIAL OF PRECISION FARMING TECHNOLOGIES
Provedor de dados: 31
Autores: Lowenberg-DeBoer,   James.
Initial ideas on risk management uses of precision agricultural technology focused on site-specific treatment of problem areas to reduce the probability of low yields and returns. Recent discussions deal with sensor and remote-sensing information to improve marketing and "as applied maps" as trace-back mechanisms to manage liability. A theoretical model is presented that suggests that there are plausible circumstances under which precision farming can reduce temporal yield variability. Empirical evidence from an on-farm trial of site-specific P&amp;K management in the Eastern Cornbelt supports the hypothesis that precision farming can have risk-reducing benefits.
Tipo: Journal Article
Palavras-chave: Food safety; GIS; GPS; Crop insurance; Marketing; Precision farming; Site specific management; Risk; Research and Development/Tech Change/Emerging Technologies; Risk and Uncertainty.
Ano: 1999
URL: http://purl.umn.edu/15366

Ex-ante evaluation of weather-based index insurance and area-yield insurance for reducing crop yield risk
Provedor de dados: 31
Autores: Bokusheva,   Raushan; Breustedt,   Gunnar; Heidelbach,   Olaf.
The study introduces an ex-ante evaluation concept into the analysis of weather-based index insurance effectiveness. We conduct our ex ante analysis by distinguishing between two consecutive periods: the first period is used for determining insurance parameters and optimal number of insurance contracts for an arable farmer; and the subsequent one is considered for the evaluation of the risk reduction due to the insurance contract defined in the first period. The study also employs the common ex-post approach by specifying and evaluating insurance contracts by means of the same period. We compare the empirical results obtained from these alternative evaluation approaches and thus investigate the ability to forecast empirically insurance schemes risk...
Tipo: Conference Paper or Presentation
Palavras-chave: Crop insurance; Ex-ante analysis; Kazakhstan weather-based index insurance; Crop Production/Industries; Risk and Uncertainty.
Ano: 2007
URL: http://purl.umn.edu/9250

ARPA Subsidies, Unit Choice, and Reform of the U.S. Crop Insurance Program
Provedor de dados: 31
Autores: Babcock,   Bruce A.; Hart,   Chad E.
The Agricultural Risk Protection Act (ARPA) has largely met its objectives of inducing farmers to increase their use of the crop insurance program. Both insured acreage and coverage levels have increased dramatically in response to ARPA's large increase in premium subsidies. An unintended consequence of the larger subsidies is a dramatic increase in the incentive for farmers to insure their crops under optional units, that is, insurance at the field level rather than at the farm or crop level. The expected rate of return to farmers who choose to invest additional premium dollars to move to optional unit coverage ranges from a low of 61 percent at the 85 percent coverage level to 144 percent at the 65 percent coverage level. This explains why the majority...
Tipo: Working or Discussion Paper
Palavras-chave: Agricultural Risk Protection Act (ARPA); Crop insurance; Optional units; Crop Production/Industries; Risk and Uncertainty.
Ano: 2005
URL: http://purl.umn.edu/18297

Impact of the New Standard Reinsurance Agreement (SRA) on Multi-Peril Crop Insurance (MPCI) Gain and Loss Probabilities
Provedor de dados: 31
Autores: Vergara,   Oscar; Seaquist,   Jack; Zuba,   Gerhard; Harrigan,   Matthew; Lee,   Eric.
We utilize an agricultural model that uses crop/weather relationships at the county resolution and fits robust distributions that take into account the impact that weather has on crop production. Once the crop insurance policy conditions and prices are applied to the modeled county yield distributions, the portfolio gain and losses can be calculated by aggregating the gain and losses at the county level, state level, regional level and nationwide level. Portfolio losses are computed under the old and new SRA rules and regulations for comparison purposes.
Tipo: Conference Paper or Presentation
Palavras-chave: SRA; MPCI; Crop insurance; Stochastic model; Weather peril; Probabilities; Crop Production/Industries; Research and Development/Tech Change/Emerging Technologies; Risk and Uncertainty; C; Q.
Ano: 2011
URL: http://purl.umn.edu/103282

Estimation of the agricultural probability of loss: evidence for soybean in Paraná state
Provedor de dados: 123
Autores: Ozaki,Vitor Augusto; Olinda,Ricardo; Faria,Priscila Neves; Campos,Rogério Costa.
In any agricultural insurance program, the accurate quantification of the probability of the loss has great importance. In order to estimate this quantity, it is necessary to assume some parametric probability distribution. The objective of this work is to estimate the probability of loss using the theory of the extreme values modeling the left tail of the distribution. After that, the estimated values will be compared to the values estimated under the normality assumption. Finally, we discuss the implications of assuming a symmetrical distribution instead of a more flexible family of distributions when estimating the probability of loss and pricing the insurance contracts. Results show that, for the selected regions, the probability distributions present...
Tipo: Info:eu-repo/semantics/article
Palavras-chave: Risk; Extreme value theory; Probability of loss; Crop insurance.
Ano: 2014
URL: http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0103-20032014000100002

โครงการการใช้เทคโนโลยีการสำรวจระยะไกลเพื่อใช้เป็นข้อมูลในการสำรวจพื้นที่ปลูกข้าว และการประกันภัยพืชผลในประเทศไทย
Provedor de dados: 106
Autores: Amornrat Intrman; Sommai Lerthna; Nelson, Andrew; Setiyono, Tri Deri; Holecz, Francesco; Barbieri, Massimo.
The Remote Sensing-based Information and Insurance for Crops in Emerging Economics (RIICE) is a project to find ways of helping Asian countries are faced with a natural disaster. Especially floods and droughts caused by the cooperation of the three organizations, namely International Research Institute (IRRI), SARMAP and Rice Department. By the year 2013-2015 in the area of responsibility of Suphan Buri Rice Research Center. Nakhon Ratchasrima Rice Research Center and the objecttive of the project is to reduce vulnerability of smallholders in rice production through better and cheaper information systems on crop growth which will in turn lead to applications such as micro-insurance schemes. On the long run rice production should have increased, thanks to...
Tipo: PhysicalObject
Palavras-chave: Remote sensing; Crop insurance; Rice production; GIS; Landsat; Rice; ข้าว; การประกันภัยพืชผล; การผลิตข้าว; ระบบสารสนเทศภูมิศาสตร์; ภาพถ่ายดาวเทียม; การสำรวจระยะไกล.
Ano: 2014
URL: http://anchan.lib.ku.ac.th/agnet/handle/001/5644