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Agricultural and Resource Economics Review >
Volume 37, Number 1, April 2008 >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/44743
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| Title: | Economic Analysis of Supplemental Deductible Coverage as Recommended in the USDA's 2007 Farm Bill Proposal |
| Authors: | Mitchell, Paul D.
Knight, Thomas O. |
| Keywords: | crop insurance
area-wide coverage
actual production history (APH)
group risk
plan (GRP)
yield distribution |
| Issue Date: | 2008-04 |
| Abstract: | A primary change to crop insurance contained in the USDA’s Farm Bill proposal is supplemental
deductible coverage (SDC). SDC would allow farmers who purchase individual
crop insurance coverage to purchase area-wide coverage in the amount of the individual policy
deductible. This supplemental area-wide coverage would be similar to the existing Group Risk
Plan policy, but with an accelerated indemnity schedule. Analysis indicates that SDC increases
farmer certainty equivalents. The largest benefits are realized by farmers with high
yield potential in counties with greater systemic risk. In general, optimal individual policy
coverage levels modestly decrease when SDC is taken. |
| URI: | http://purl.umn.edu/44743 |
| Institution/Association: | Agricultural and Resource Economics Review>Volume 37, Number 1, April 2008 |
| Total Pages: | 15 |
| From Page: | 117 |
| To Page: | 131 |
| Collections: | Volume 37, Number 1, April 2008
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| mitchell - current.pdf | | 315Kb | PDF | View/Open |
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