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W hole F arm I ncome I nsurance
Author(s) -
Turvey Calum G.
Publication year - 2012
Publication title -
journal of risk and insurance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.055
H-Index - 63
eISSN - 1539-6975
pISSN - 0022-4367
DOI - 10.1111/j.1539-6975.2011.01426.x
Subject(s) - indemnity , crop insurance , subsidy , revenue , agricultural science , business , actuarial science , economics , agriculture , agricultural economics , finance , environmental science , geography , market economy , archaeology
This article employs a mathematical programming model to investigate farmers’ optimal crop choices under gross revenue insurance, whole farm income insurance (WFI), the Canadian Agricultural Income Stabilization (CAIS) program, and its modified 2008 program AgrInvest. WFI poses a particularly interesting problem since the indemnity/premium structure is dependent upon the choice of crops, whereas the choice of crops is simultaneously influenced by the presence of the whole farm insurance program. Results indicate that farmers will alter farm plans significantly in response to the type of insurance offered and the level of subsidy.