Developing area-triggered whole-farm revenue insurance

Lekhnath Chalise, Keith H. Coble, Barry J. Barnett, J. Corey Miller

Research output: Contribution to journalArticlepeer-review

7 Scopus citations

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 languageEnglish
Pages (from-to)27-44
Number of pages18
JournalJournal of Agricultural and Resource Economics
Volume42
Issue number1
StatePublished - Jan 2017

Keywords

  • Crop insurance
  • Farm policy
  • Multivariate simulation
  • Risk

ASJC Scopus subject areas

  • Animal Science and Zoology
  • Agronomy and Crop Science
  • Economics and Econometrics

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