Computing Average Per Acre Indemnity Payments for Corn in Iowa
In 1996, two new crop insurance products--Crop Revenue Coverage and Income Protection--were introduced to insure against losses in revenue, as opposed to the traditional multiple-peril crop insurance that insures against crop yield losses. Using yield and price difference distributions in 1,000 simulation runs, the corn yields for all 99 Iowa counties and futures prices were collected. Estimates of average per acre indemnities for all three insurance products at the county and state levels are presented.
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