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Selecting Risk Efficient Crop Insurance Alternatives for Northeast Kansas Corn/Soybean Farms

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  • Harper, Jayson K.
  • Williams, Jeffery R.
  • Barnaby, G. Art

Abstract

Concerns about the drought of 1988 continuing on into 1989 have lead to increased interest in the use of crop insurance to mitigate the effects of low yields on farm income. This paper analyzes the selection of crop insurance yield guarantee levels and indemnity prices based on risk preferences for corn/soybean farmers in northeastern Kansas. Using stochastic dominance with respect to a function analysis, it was determined that for other than the most risk-preferring producers, some level of crop insurance is contained in the preferred set of strategies. For the most risk -averse producers, the highest yield guarantee level and indemnity price election are preferred.

Suggested Citation

  • Harper, Jayson K. & Williams, Jeffery R. & Barnaby, G. Art, 1989. "Selecting Risk Efficient Crop Insurance Alternatives for Northeast Kansas Corn/Soybean Farms," WAEA/ WFEA Conference Archive (1929-1995) 244978, Western Agricultural Economics Association.
    • Handle: RePEc:ags:waeaar:244978
    DOI: 10.22004/ag.econ.244978
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    References listed on IDEAS

    as
    1. Jeffery R. Williams, 1988. "A Stochastic Dominance Analysis of Tillage and Crop Insurance Practices in a Semiarid Region," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(1), pages 112-120.
    2. Raskin, Rob & Cochran, Mark J., 1986. "Interpretations And Transformations Of Scale For The Pratt-Arrow Absolute Risk Aversion Coefficient: Implications For Generalized Stochastic Dominance," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 11(2), pages 1-7, December.
    3. Lipton, Kathryn L. & Pollack, Susan L., 1988. "The Disaster Assistance Act Of 1988: A Description Of The Provisions," Staff Reports 278123, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Khojasteh, Khosrow, 1992. "Effects of farm characteristics and government disaster assistance on multiple-peril crop insurance purchases by Iowa crop farmers," ISU General Staff Papers 1992010108000010841, Iowa State University, Department of Economics.

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