IDEAS home Printed from https://ideas.repec.org/a/ags/ajaeau/22485.html

Distributions Of Indemnities For Crop-Insurance Plans: With Application To Grain Crops In New South Wales

Author

Listed:
  • Battese, George E.
  • Francisco, Emilio M.

Abstract

A review of crop-insurance schemes is followed by a discussion of a guaranteed-yield, crop-insurance plan. General formulae for the distribution function and mathematical expectation of indemnities for the insurance plan are presented in terms of the distribution of crop yields. Three special cases are considered in which the original yields, the square root of yields, and the logarithm of yields are normally distributed. The insurance plan is applied on a regional basis for wheat and sorghum production in N.S.W. Given distributional information on the crops obtained from a simulation model, expected indemnities are calculated for four different insurance plans.

Suggested Citation

  • Battese, George E. & Francisco, Emilio M., 1977. "Distributions Of Indemnities For Crop-Insurance Plans: With Application To Grain Crops In New South Wales," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(2), pages 1-13, August.
    • Handle: RePEc:ags:ajaeau:22485
    DOI: 10.22004/ag.econ.22485
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/22485/files/21020067.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.22485?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Richard H. Day, 1965. "Probability Distributions of Field Crop Yields," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 47(3), pages 713-741.
    2. Sydney D. Staniforth, 1954. "Combating Uncertainty in Agricultural Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 36(1), pages 87-97.
    3. Keith O. Campbell, 1971. "A Wheat Policy For The Seventies," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 15(1), pages 51-56, April.
    4. Jock R. Anderson, 1975. "Programming For Efficient Planning Against Non‐Normal Risk," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 19(2), pages 94-107, August.
    5. Harold G. Halcrow, 1949. "Actuarial Structures for Crop Insurance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(3), pages 418-443.
    6. Martin H. Yeh & Roland Y. Wu, 1966. "Premium Ratemaking in an All Risk Crop Insurance Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 48(5), pages 1580-1586.
    7. Timothy J. Ryan, 1974. "A Note On Victorian Wheat Yield Distributions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 18(2), pages 144-147, August.
    8. Martin H. Yeh & Roland Y. Wu, 1966. "Premium Ratemaking In An All Risk Crop Insurance Program1," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 14(1), pages 40-49, March.
    9. Ryan, Timothy J., 1974. "A Note On Victorian Wheat Yield Distributions," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 18(2), pages 1-4, August.
    10. Jones, Lawrence A. & Larson, Donald K., 1965. "Economic Impact of Federal Crop Insurance in Selected Areas of Virginia and Montana," Agricultural Economic Reports 307294, United States Department of Agriculture, Economic Research Service.
    11. Campbell, Keith O., 1971. "A Wheat Policy For The Seventies," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 15(01), pages 1-6, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dudek, Daniel J. & Allen, P. Geoffrey, 1984. "Estimating Crop Yield Insurance Premium Rates," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 1), pages 1-9, April.
    2. Geigel, Joanne M. & Sundquist, W. Burt, 1984. "A Review And Evaluation Of Weather-Crop Yield Models," Staff Papers 13699, University of Minnesota, Department of Applied Economics.
    3. King, Robert P., "undated". "Crop Insurance Research Needs," 1983: S-180 Annual Meeting, March 28-30, 1983, San Antonio, Texas 271715, Regional Research Projects > S-180: Risk Management Strategies for Agricultural Production Firms: Perspectives and Research Issues.
    4. Anderson, Jock R., 1979. "Impacts of Climatic Variability in Australian Agriculture: A Review," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 47(03), pages 1-31, December.
    5. B. A. Sanderson & J. J. Quilkey & J. W. Freebairn, 1980. "Supply Response Of Australian Wheat Growers," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 24(2), pages 129-140, August.
    6. Unknown, 1988. "Australian Agricultural Economics Society Awards 1988; 33rd Annual Conference, Australian Agricultural Economics Society, Lincoln College, Canterbury, NZ, 6-9 February 1989," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 33(2), pages 1-5.
    7. Lee, Donna, 1991. "Evaluating Risky Input Decisions in Crop Response Analysis," WAEA/ WFEA Conference Archive (1929-1995) 321431, Western Agricultural Economics Association.
    8. Norwood, F. Bailey & Roberts, Matthew C. & Lusk, Jayson L., 2002. "How Are Crop Yields Distributed?," 2002 Annual meeting, July 28-31, Long Beach, CA 19733, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. King, Robert P. & Robison, Lindon J., "undated". "Implementing Stochastic Dominance With Respect To A Function," Risk Analysis in Agriculture: Research and Educational Developments, January 16-18, 1980, Tucson, Arizona 271563, Regional Research Projects > W-149: An Economic Evaluation of Managing Market Risks in Agriculture.
    10. Ayenew, Habtamu Yesigat & Sauer, Johannes & Abate-Kassa, Getachew, 2016. "Cost of Risk Exposure, Farm Disinvestment and Adaptation to Climate Uncertainties: The Case of Arable Farms in the EU," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235595, Agricultural and Applied Economics Association.
    11. Jesse B. Tack & David Ubilava, 2015. "Climate and agricultural risk: measuring the effect of ENSO on U.S. crop insurance," Agricultural Economics, International Association of Agricultural Economists, vol. 46(2), pages 245-257, March.
    12. Chen, Shu-Ling & Miranda, Mario J., 2006. "Modeling Yield Distribution In High Risk Counties: Application To Texas Upland Cotton," 2006 Annual meeting, July 23-26, Long Beach, CA 21392, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Vitor A. Ozaki & Sujit K. Ghosh & Barry K. Goodwin & Ricardo Shirota, 2008. "Spatio-Temporal Modeling of Agricultural Yield Data with an Application to Pricing Crop Insurance Contracts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 951-961.
    14. Bharat Ramaswami & Terry L. Roe, 2002. "Aggregation in area yield insurance:The linear additive model," Discussion Papers 02-08, Indian Statistical Institute, Delhi.
    15. Zeytoon Nejad Moosavian, Seyyed Ali & Goodwin, Barry K., "undated". "GENERALIZING THE GENERAL: Generalizing the CES Production Function to Allow for the Flexibility of Input-Driven Output Risk and Viability of Input Thresholds," 2018 Annual Meeting, August 5-7, Washington, D.C. 274352, Agricultural and Applied Economics Association.
    16. Berck, Peter, 1980. "Portfolio Theory and the Demand for Futures: theory and the case of California cotton," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt58j4t4qp, Department of Agricultural & Resource Economics, UC Berkeley.
    17. Chen, Xiaomei & Wang, H. Holly & Makus, Larry D., 2007. "Production Risk and Crop Insurance Effectiveness: Organic Versus Conventional Apples," SCC-76 Meeting, 2007, March 15-17, Gulf Shores, Alabama 9381, SCC-76: Economics and Management of Risk in Agriculture and Natural Resources.
    18. Deng, Xiaohui & Barnett, Barry J. & Hoogenboom, Gerrit & Yu, Yingzhuo & Garcia, Axel, 2006. "Evaluating the Efficiency of Crop Index Insurance Products," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35333, Southern Agricultural Economics Association.
    19. Xiao Lin & W. Jean Kwon, 2020. "Application of parametric insurance in principle‐compliant and innovative ways," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 23(2), pages 121-150, June.
    20. Jarvie, E. M. & Nieuwoudt, W. L., 1989. "Factors Influencing Crop Insurance Participation In Maize Farming," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 28(2), June.

    More about this item

    Keywords

    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ajaeau:22485. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.