Evaluation Of Crop Insurance Premium Rates For Georgia And South Carolina Peaches
AbstractWe estimate actuarially fair premium rates for yield insurance for Georgia and South Carolina peaches for comparison to the premium rates established by the Risk Management Agency (RMA) for the 1999 crop. The RMA premium rates varied from county to county, but were identical for all growers in a given county. The estimated premium rates decrease with the grower's expected yield. The RMA rate structure encouraged adverse selection, as premium rates were too low for growers with low expected yields (especially at low coverage levels) and were too high for growers with high expected yields (especially at high coverage levels).
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Bibliographic InfoArticle provided by Agricultural Economics Association of Georgia in its journal Journal of Agribusiness.
Volume (Year): 18 (2000)
Issue (Month): 3 ()
adverse selection; crop insurance; peaches; premium rate; yield guarantee; Risk and Uncertainty;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Barry K. Goodwin & Alan P. Ker, 1998. "Nonparametric Estimation of Crop Yield Distributions: Implications for Rating Group-Risk Crop Insurance Contracts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 139-153.
- Miller, Stephen E. & Kahl, Kandice H. & Rathwell, P. James, 2000. "Revenue Insurance For Georgia And South Carolina Peaches," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(01), April.
- T. Jeffrey Price & Michael E. Wetzstein & Mark W. Rieger, 1997. "Reducing Yield Variation in Peach Orchards by Geographic Scattering," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1119-1126.
- Goodwin, Barry K., 1994. "Premium Rate Determination In The Federal Crop Insurance Program: What Do Averages Have To Say About Risk?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(02), December.
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