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Abstract

We estimate actuarially sound premium rates for individual yield guarantee and income protection crop insurance products for Georgia and South Carolina peaches. In most cases, the premium rate for an income protection product equals or exceeds the premium rate for an individual yield guarantee product for a given coverage level and average farm yield. Although the premium rates for the two products differ in a statistical sense, they do not appear to differ in an economic sense except at high coverage levels for growers with very high yields.

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