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Economic Analysis of Supplemental Deductible Coverage as Recommended in the USDA's 2007 Farm Bill Proposal AgEcon
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
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Estimating Farm Level Multivariate Yield Distribution Using Nonparametric Methods AgEcon
Zheng, Qiujie; Wang, H. Holly; Shi, Qinghua.
Modeling crop yield distributions has been an important topic in agricultural production and risk analysis, and nonparametric methods have gained attention for their flexibility in describing the shapes of yield density functions. In this article, we apply a nonparametric method to model joint yield distributions based on farm-level data for multiple crops, and also provide a way of simulation for univariate and bivariate distributions. The results show that the nonparametric models, both univariate and bivariate, are estimated quite well compared to the original samples, and the simulated empirical distributions also preserve the attributes of the original samples at a reasonable level. This article provides a feasible way of using multivariate...
Tipo: Conference Paper or Presentation Palavras-chave: Yield distribution; Multi-variate nonparametric; China; Farm-level; Risks; Farm Management; Risk and Uncertainty.
Ano: 2008 URL: http://purl.umn.edu/6509
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Modeling Texas Dryland Cotton Yields, With Application to Crop Insurance Actuarial Rating AgEcon
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
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Modelling yield risk measures of major crop plants AgEcon
Kobus, Pawel.
The paper deals with the problem of modelling yield risk measures for major crop plants in Poland. Hence, in some cases the gamma distribution offers a better fit to the data than normal distribution, and in addition to linear models, generalized linear models were also used. The research was based on data from Polish FADN, with sample sizes ranging from 416 up to 2300, depending on the crop plant. It was found that models based on the farm level data, can explain on average 20% of variation coefficient unevenness. The most important variables were average yield, type of farming, arable area and land quality. The elimination of the average yield from the models reduced the average determination coefficient to about 9%.
Tipo: Presentation Palavras-chave: Production risk; Risk measures; Yield distribution; Risk and Uncertainty; Q10; C46.
Ano: 2012 URL: http://purl.umn.edu/122535
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The Law of the Minimum and Sources of Nonzero Skewness for Crop Yield Distributions AgEcon
Tumusiime, Emmanuel; Brorsen, B. Wade; Boyer, Christopher N..
Crop yields are not commonly found to be normally distributed, but the cause of the non-normal distribution is unclear. The non-normality might be due to weather variables and/or an underlying von Liebig law of the minimum (LoM) production function. Our objective is to determine the degree to which an underlying linear response stochastic plateau production function can explain the skewness of Oklahoma wheat yields at varied nitrogen rates. We use farm-level wheat data from a long-term experiment in Oklahoma, which is a unique data set to the literature. The Tembo et al. (2008) production function provides negative skewness at all levels of nitrogen with skewness near zero for both very high and very low levels of nitrogen. Observed skewness for wheat...
Tipo: Conference Paper or Presentation Palavras-chave: Linear plateau model; Non-normal distributions; Skewness; Wheat; Yield distribution; Production Economics; Risk and Uncertainty; Q10.
Ano: 2011 URL: http://purl.umn.edu/98820
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