Is There a Viable Market for Area-Based Crop Insurance? |
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| Authors: | Xiaohui Deng Barry J Barnett Dmitry V Vedenov |
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| Institution: | Xiaohui Deng is assistant professor in the Department of Agricultural Economics, California State University, Fresno. Barry J. Barnett is associate professor, and Dmitry V. Vedenov is assistant professor in the Department of Agricultural and Applied Economics, University of Georgia. |
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| Abstract: | The performance of area yield insurance and farm-level multiple peril crop insurance is analyzed for cotton and soybean production in Georgia and South Carolina. The analysis improves on many previous studies by utilizing actual farm-level yield data and by comparing the two types of insurance products not only for actuarially fair premium rates but also for actual unsubsidized and subsidized premium rates. Results suggest that, even in heterogeneous production regions, area yield insurance may be a viable alternative to farm-level insurance when premium rates for farm-level insurance contain large positive wedges. |
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| Keywords: | area yield insurance crop insurance Group Risk Plan risk management |
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