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Abstract
Rice production is distinguished from most other field crops by distinct differences in yields across
cultivars and producers being paid on production as a result of post-harvest milling into head rice and
brokens. In the ten years of Arkansas harvest data from performance trials in six different locations,
hybrids are shown the have 19 percent higher paddy yields and head rice yield rates 1.8 percentage points
lower than conventional varieties. In crop insurance yield protection and revenue protection policies, no
distinctions in premiums are made on the basis of variety. Adjustments for adverse milling outcomes are
made only in the most extreme cases. Using a three-equation, econometric model to predict paddy yields,
milled rice yields and head rice yields, the relative returns to yield protection and revenue protection crop
insurance are estimated. Additionally, a policy that is more sensitive to milling deficiencies is explored.
Results indicate some advantage for hybrids compared with conventional cultivars as a ratio of
indemnities to premiums. A revenue protection policy that would cover adverse milling outcomes would
lessen risk marginally.