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Constructing Farm Level Yield Densities from Aggregated Data: Analysis and Comparison of Approaches

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Author Info
Cooper, Joseph
Langemeier, Michael
Schnitkey, Gary
Zulauf, Carl

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Abstract

Yield variability can be significantly higher at the farm level than at more aggregated levels, including the county. However, due to a dearth of available farm level data, much stochastic analysis involving farm yields utilizes more aggregated yield data as a proxy for the farm level. We empirically evaluate farm-level variability using longitudinal farm level data sets available from the Kansas Farm Management Association and the Illinois Farm Business and Farm Management Association. For corn, soybeans, and wheat, we compare the farm level yield variability obtained from this data to that inferred from Federal crop insurance premiums. The farm management data exhibit lower yield variability than are implied by the crop insurance premiums.

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Publisher Info
Paper provided by Agricultural and Applied Economics Association in its series 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin with number 49216.

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Date of creation: 23 Apr 2009
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Handle: RePEc:ags:aaea09:49216

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Related research
Keywords: Yield variability; crop insurance; corn; wheat; soybeans; Agricultural and Food Policy; Crop Production/Industries; Research Methods/ Statistical Methods; Risk and Uncertainty;

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References listed on IDEAS
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  1. Cooper, Joseph, 2009. "Payments under the Average Crop Revenue Program: Implications for Government Costs and Producer Preferences," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(1), April. [Downloadable!]
  2. Barry K. Goodwin, 2009. "Payment Limitations and Acreage Decisions under Risk Aversion: A Simulation Approach," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 91(1), pages 19-41, 02. [Downloadable!] (restricted)
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This page was last updated on 2009-12-11.

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