Abstract
This article documents the design and rate-making procedures used in the development of the Group Risk Plan (GRP) - the new federal crop insurance product that insures based on area yield. The authors of this article worked closely with personnel in the Federal Crop Insurance Corporation and others in developing methodological and practical constraints needed in implementing a workable area yield contract. GRP indemnity payments are made based on percentage shortfalls in actual county yields relative to a forecasted yield. Historical county yield data are used to develop forecasted yields and premium rates.
| Original language | English |
|---|---|
| Pages (from-to) | 430-438 |
| Number of pages | 9 |
| Journal | American Journal of Agricultural Economics |
| Volume | 79 |
| Issue number | 2 |
| DOIs | |
| State | Published - May 1997 |
Bibliographical note
Funding Information:Funding for this research was provided by the University of Kentucky Experiment Station and the U.S. Department of Agriculture's Economic Research Service and the Risk Management Agency. The University Experiment Station number is 97-04142.
Keywords
- Agricultural policy
- Area yield
- Crop insurance
ASJC Scopus subject areas
- Agricultural and Biological Sciences (miscellaneous)
- Economics and Econometrics