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Participation In Multiple-Peril Crop Insurance: Risk Assessments And Risk Preferences Of Cranberry Growers

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  • Dismukes, Robert
  • Allen, P. Geoffrey
  • Morzuch, Bernard J.

Abstract

To investigate the poor participation rate of cranberry growers in the multiple-peril crop insurance program, a sample of 15 Massachusetts growers was interviewed. According to their risk preferences, a much greater proportion of growers should have insured, than actually did. A possible solution is to match the distribution used by the insurer closer to that believed by the grower. Adjusting each grower's historical yield series for trend brought the historical and subjective mean yields much closer. However, an aggregate test found the effect of adjustment to be insignificant, implying that the avenue for increased participation lies elsewhere.

Suggested Citation

  • Dismukes, Robert & Allen, P. Geoffrey & Morzuch, Bernard J., 1989. "Participation In Multiple-Peril Crop Insurance: Risk Assessments And Risk Preferences Of Cranberry Growers," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 18(2), pages 1-9, October.
    • Handle: RePEc:ags:nejare:28868
    DOI: 10.22004/ag.econ.28868
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    References listed on IDEAS

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    1. Meyer, Jack, 1977. "Choice among distributions," Journal of Economic Theory, Elsevier, vol. 14(2), pages 326-336, April.
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    5. 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.
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    Cited by:

    1. Lee, Hyunok & Blank, Steven C., 2004. "A Statistical Profile of Horticultural Crop Farm Industries in California," Research Reports 11931, University of California, Davis, Giannini Foundation.
    2. Edelman, Mark A. & Schmiesing, Brian H. & Khajasteh, Khosrow, 1990. "Effects of Disaster Assistance on Multiple Peril Crop Insurance Purchases by Iowa Crop Farmers," 1990 Annual meeting, August 5-8, Vancouver, Canada 271048, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Hartell, Jason G., 2004. "Pricing Benefit Externalities of Soil Carbon Sequestration in Multifunctional Agriculture," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(2), pages 1-15, August.

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