IDEAS home Printed from https://ideas.repec.org/a/eme/afrpps/v73y2013i1p74-87.html
   My bibliography  Save this article

Estimating structural change in US crop insurance experience

Author

Listed:
  • Keith H. Coble
  • Thomas O. Knight
  • Mary Frances Miller
  • Barry J. Goodwin
  • Roderick M. Rejesus
  • Ryan Boyles

Abstract

Purpose - The purpose of this research is to investigate the degree to which trends and structural change may have altered crop insurance expected loss cost ratios across time. Because loss experience is used to set rates for the program, these changes can impact the premiums paid by producers and cost to the government. Design/methodology/approach - County level adjusted loss cost data was merged with climate division weather data for the 1980‐2009 period. Crop‐specific regional‐level regression models were estimated to test for trends and structural changes in the loss experience for major crops (corn, soybeans, sorghum, cotton, winter wheat, and spring wheat). Climate data was used to control for the effect of weather. Findings - For several crops and regions, a significant break point in the loss cost data is found at 1995. This is consistent with the policy changes that occurred in in the program due to the 1994 legislative change. In most instances loss experience prior to 1995 is higher than more recent years even when controlling for the effect of weather. The exception is in winter wheat where it appears recent experience may be worse rather than older experience. Originality/value - This paper provides a large‐scale assessment of the magnitude of improved crop insurance loss experience across time.

Suggested Citation

  • Keith H. Coble & Thomas O. Knight & Mary Frances Miller & Barry J. Goodwin & Roderick M. Rejesus & Ryan Boyles, 2013. "Estimating structural change in US crop insurance experience," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 73(1), pages 74-87, May.
    • Handle: RePEc:eme:afrpps:v:73:y:2013:i:1:p:74-87
    DOI: 10.1108/00021461311321320
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/00021461311321320/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/00021461311321320/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/00021461311321320?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rejesus, Roderick M. & Coble, Keith H. & Miller, Mary France & Boyles, Ryan & Goodwin, Barry K & Knight, Thomas O., 2015. "Accounting for Weather Probabilities in Crop Insurance Rating," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(2), pages 1-19, May.

    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:eme:afrpps:v:73:y:2013:i:1:p:74-87. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Emerald Support (email available below). General contact details of provider: .

    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.