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A Risk Analysis of Adjusted Gross Revenue-Lite on Beef Farms

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  • Williams, Jeffery R.
  • Saffert, Andrew T.
  • Barnaby, G. Art
  • Llewelyn, Richard V.
  • Langemeier, Michael R.

Abstract

This study evaluates the Adjusted Gross Revenue-Lite (AGR-Lite) whole-farm adjusted gross revenue insurance program on net farm income risk using panel data from 49 southeast Kansas beef farms. On average for the group, but not each individual farm, AGR-Lite reduces the mean and standard deviation of net farm income, raises the average minimum, and lowers the average maximum observations of the net income distribution. Thirty-four farms (69%) received at least one indemnity payment. Stochastic efficiency with respect to a function reveals that AGR-Lite is preferred by 18 of the farm managers (37%) when an upper bound on the risk-aversion coefficient is used.

Suggested Citation

  • Williams, Jeffery R. & Saffert, Andrew T. & Barnaby, G. Art & Llewelyn, Richard V. & Langemeier, Michael R., 2014. "A Risk Analysis of Adjusted Gross Revenue-Lite on Beef Farms," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 46(2), pages 227-244, May.
    • Handle: RePEc:cup:jagaec:v:46:y:2014:i:02:p:227-244_00
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    Cited by:

    1. Yangxuan Liu & Michael R. Langemeier & Ian M. Small & Laura Joseph & William E. Fry & Jean B. Ristaino & Amanda Saville & Benjamin M. Gramig & Paul V. Preckel, 2018. "A Risk Analysis of Precision Agriculture Technology to Manage Tomato Late Blight," Sustainability, MDPI, vol. 10(9), pages 1-19, August.
    2. Liu, Yangxuan & Langemeier, Michael & Small, Ian & Joseph, Laura & Fry, William, 2015. "Risk management strategies using potato precision farming technology," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205417, Agricultural and Applied Economics Association.
    3. Fan, Yubing & Himanshu, Sushil K. & Ale, Srinivasulu & DeLaune, Paul B. & Zhang, Tian & Park, Seong C. & Colaizzi, Paul D. & Evett, Steven R. & Baumhardt, R. Louis, 2022. "The synergy between water conservation and economic profitability of adopting alternative irrigation systems for cotton production in the Texas High Plains," Agricultural Water Management, Elsevier, vol. 262(C).
    4. Griffith, Andrew P. & Boyer, Christopher N. & Kane, Ian, 2022. "Literature Review: Price Risk Management Contributions to Economic Sustainability in the Cattle Industry," Extension Reports 322767, University of Tennessee, Department of Agricultural and Resource Economics.

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    More about this item

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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