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Area-Yield Crop Insurance Reconsidered

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  • Mario J. Miranda

Abstract

One of the more promising proposals for reforming the federal crop insurance program calls for both premium rates and indemnities to be based not on the producer's individual yield but rather on the aggregate yield of a surrounding area. Area-yield crop insurance can provide more effective yield-loss coverage than individually tailored insurance, without most of the adverse selection and moral hazard problems that have historically undermined the actuarial performance of the federal crop insurance program.

Suggested Citation

  • Mario J. Miranda, 1991. "Area-Yield Crop Insurance Reconsidered," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 233-242.
    • Handle: RePEc:oup:ajagec:v:73:y:1991:i:2:p:233-242.
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    File URL: http://hdl.handle.net/10.2307/1242708
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