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Preferences for crop insurance when farmers are diversified

Listed author(s):
  • Steven C. Blank

    (Dept. of Agricultural Economics, University of California, Davis, CA 95616-8512)

  • Jeffrey McDonald

    (Dept. of Agricultural Economics, University of California, Davis, CA 95616-8512)

The government intends to rely on an insurance-based solution to yield risk. Therefore, it is important to identify which characteristics most affect a grower's decision regarding whether or not to use crop insurance. This case study uses California cross-sectional survey data to directly compare the relative effects of three types of characteristics that are expected to influence insurance preferences. In general, results from the model estimated indicate that preferences for crop insurance are a function of the commodities produced and the risk environment faced by individual growers. © 1996 John Wiley & Sons, Inc.

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Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

Volume (Year): 12 (1996)
Issue (Month): 6 ()
Pages: 583-592

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Handle: RePEc:wly:agribz:v:12:y:1996:i:6:p:583-592
DOI: 10.1002/(SICI)1520-6297(199611/12)12:6<583::AID-AGR7>3.0.CO;2-#
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References listed on IDEAS
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  1. Knight, Thomas O. & Lovell, Ashley C. & Rister, M. Edward & Coble, Keith H., 1989. "An Analysis Of Lenders' Influence On Agricultural Producers' Risk Management Decisions," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(02), December.
  2. Blank, Steven C., 1990. "Returns To Limited Crop Diversification," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(02), December.
  3. Bernard V. Tew & Donald W. Reid & Giles T. Rafsnider, 1992. "Rational Mean-Variance Decisions for Subsistence Farmers," Management Science, INFORMS, vol. 38(6), pages 840-845, June.
  4. Liapis, Peter S. & Moffitt, L. Joe, 1983. "Economic Analysis Of Cotton Integrated Pest Management Strategies," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 15(01), July.
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