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Abstract
The government intends to rely on an insurance-based solution to yield risk,
therefore, it is important to identify which characteristics most effect a grower's decision
regarding whether or not to use crop insurance. This case study uses California cross sectional
survey data to directly compare the relative effects of three types of
characteristics which are expected to influence insurance preferences. In general, results
from the model estimated indicate that preferences for crop insurance are a function of
both the commodities produced and the risk environment faced by individual growers.