Abstract
Whole-farm revenue insurance is frequently suggested as a conceptually attractive alternative to commodity-specific insurance, but attempts to deliver farm-level whole-farm revenue insurance (FWFI) have been fraught with underwriting and actuarial challenges. This study develops customizable area-based whole-farm insurance (CAWFI) that overcomes some known impediments to existing designs. Certainty equivalents are generated for representative farms in Kansas, North Dakota, Illinois, and Mississippi. We find that a restricted CAWFI design generates significant risk reduction at much lower cost than FWFI.
| Original language | English |
|---|---|
| Pages (from-to) | 27-44 |
| Number of pages | 18 |
| Journal | Journal of Agricultural and Resource Economics |
| Volume | 42 |
| Issue number | 1 |
| State | Published - Jan 2017 |
Bibliographical note
Publisher Copyright:Copyright 2017 Western Agricultural Economics Association.
Keywords
- Crop insurance
- Farm policy
- Multivariate simulation
- Risk
ASJC Scopus subject areas
- Animal Science and Zoology
- Agronomy and Crop Science
- Economics and Econometrics