Premium
Crop Insurance's Role in Risk Management on Hog‐Crop Farms
Author(s) -
Patrick George F.,
Rao Ananth S.
Publication year - 1989
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/11.1.1
Subject(s) - crop insurance , debt , yield (engineering) , asset (computer security) , crop , business , payment , risk management , government (linguistics) , economics , agricultural science , agricultural economics , finance , agriculture , agronomy , geography , environmental science , biology , archaeology , linguistics , philosophy , materials science , computer security , computer science , metallurgy
Multiple peril crop insurance's (MPCI) impact on Central Indiana hog‐crop farms was analyzed under scenarios of alternative debt/asset ratios, government deficiency payment programs, and levels of off‐farm income and yield variability. MPCI reduced the probability of survival of high‐debt farms when yield variability was equal to county average yields. More positive effects result from use of MPCI under assumptions of greater available financial resources or higher levels of yield variability. MPCI is likely to have a more important role in risk management for the medium‐debt farm or the high‐debt farm with off‐farm income than for the other scenarios analyzed.