Revenue Risk Reduction Impacts of Crop Insurance in a Multi-Crop Framework

This study develops a multi-crop insurance model which is employed to evaluate crop insurance decisions when several crops are produced jointly. The results suggest that the diversification effects derived from producing multiple crops can substantially alter the risk reduction impacts of crop insurance versus if the decision is viewed from the perspective of a single crop. Further, the relatedness of crop production and price responses among crops differs considerably across insurance products and strategies. As a result, insurance strategies that might provide the maximum risk reduction for an individual crop do not necessarily carry over to the multi-crop case.


Issue Date:
2009-04
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/53043
PURL Identifier:
http://purl.umn.edu/53043
Total Pages:
21
Series Statement:
NCCC- 134
09




 Record created 2017-04-01, last modified 2020-10-28

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