IDEAS home Printed from https://ideas.repec.org/p/ags/aaea07/9708.html
   My bibliography  Save this paper

Optimal Crop-Insurance Strategies under Climate Variability: Contrasting Insurer and Farmer Interests

Author

Listed:
  • Cabrera, Victor E.
  • Solis, Daniel
  • Letson, David

Abstract

This study analyzes the potential synergies and conflicts of interest between farmers and insurers in the selection of an optimal crop insurance contract. Special attention is given to how climate information influences this decision-making process. To do so, we consider a representative 40 hectares, rainfed, cotton-peanut farm located in Jackson County in Florida. Our results show that year-to-year ENSO-based climate variability affects farmers' income and insurers' gains according to crop insurance contracts. Additionally, introduction of ENSO-based climate forecasts presents a significant impact on the selection of a particular contract. We conclude that insurers and farmers can bridge their divergent interests by improving their understanding of the effect of climate conditions on the development of sustainable business plans.

Suggested Citation

  • Cabrera, Victor E. & Solis, Daniel & Letson, David, 2007. "Optimal Crop-Insurance Strategies under Climate Variability: Contrasting Insurer and Farmer Interests," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9708, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea07:9708
    DOI: 10.22004/ag.econ.9708
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/9708/files/sp07ca02.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.9708?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
    ---><---

    Citations

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


    Cited by:

    1. Geoffroy Enjolras & Robert Kast & Patrick Sentis, 2009. "Diversification in Area-Yield Crop Insurance : The Multi Linear Additive Model," Working Papers 09-15, LAMETA, Universtiy of Montpellier, revised Nov 2009.
    2. Woli, Prem & Paz, Joel O. & Hoogenboom, Gerrit & Garcia y Garcia, Axel & Fraisse, Clyde W., 2013. "The ENSO effect on peanut yield as influenced by planting date and soil type," Agricultural Systems, Elsevier, vol. 121(C), pages 1-8.

    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:aaea07:9708. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.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.