IMPLICATIONS OF CROP INSURANCE FOR FARMERS AND LENDERS

The effect of the farmer's choice of crop insurance was evaluated on both the farmer's and lender's performance. This was done using whole-farm, Monte Carlo simulation for Texas wheat/sorghum operations. Results indicate crop insurance would be preferred by moderately risk-averse farmers when farm firm failure became an issue or the insurance loss ration approached one. A lender always preferred the use of crop insurance, especially when the probability of firm bankruptcy was an issue.


Issue Date:
1987-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/30193
Published in:
Southern Journal of Agricultural Economics, Volume 19, Number 2
Page range:
113-120
Total Pages:
8




 Record created 2017-04-01, last modified 2017-08-24

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