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Demand For Crop Insurance By Organic Corn And Soybean Farmers In Three Major Producing States

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Author Info

  • Singerman, Ariel
  • Hart, Chad E.
  • Lence, Sergio H.

Abstract

A survey of organic grain and oilseed producers in Iowa, Minnesota and Wisconsin was conducted to collect information about their demographic characteristics, production and price risk management strategies, yields and losses, and crop insurance decisions. The data are analyzed using a discrete choice model to establish which variables influence organic producers’ decision of whether to purchase crop insurance and also which ones affect the insurance product choice when applicable. The study describes the risk profiles of organic producers, and analyzes whether significant variations exist between organic and conventional methods of production so as to quantitatively determine the differential production risk associated with organic production. This research may contribute to the design of an organic crop insurance policy in which organic producers would be charged according to their idiosyncratic production risks, rather than the arbitrary 5% blanket premium surcharge currently in use.

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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado with number 60935.

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Date of creation: 2010
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Handle: RePEc:ags:aaea10:60935

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Related research

Keywords: crop insurance; organic farming; organic production; Agricultural and Food Policy; Risk and Uncertainty; Q18;

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Cited by:
  1. Singerman, Ariel & Hart, Chad E. & Lence, Sergio H., 2012. "Revenue Protection for Organic Producers: Too Much or Too Little," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124370, Agricultural and Applied Economics Association.
  2. Singerman, Ariel & Lence, Sergio H. & Kimble-Evans, Amanda, 2010. "Organic Crop Prices, or 2x Conventional Ones?," Staff General Research Papers 31544, Iowa State University, Department of Economics.
  3. Singerman, Ariel & Lence, Sergio H., 2010. "How Closely Related Are The Prices Of Organic And Conventional Corn?," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61151, Agricultural and Applied Economics Association.

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