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The Impact of the Average Crop Revenue Election (ACRE) Program on the Effectiveness of Crop Insurance AgEcon
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
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