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Demand for Crop Insurance by Organic Corn and Soybean Farmers in Three Major Producing States

  • Singerman, Ariel
  • Hart, Chad E.
  • Lence, Sergio H.

  A survey of organic grain and oilseed producers in Iowa, Minnesota and Wisconsin was conducted to collect information about their demographic characteristics, production and price risk management strategies, yields and losses, and crop insurance decisions. The data are analyzed using a discrete choice model to establish which variables influence organic producers’ decision of whether to purchase crop insurance and also which ones affect the insurance product choice when applicable. The study describes the risk profiles of organic producers, and analyzes whether significant variations exist between organic and conventional methods of production so as to quantitatively determine the differential production risk associated with organic production. This research may contribute to the design of an organic crop insurance policy in which organic producers would be charged according to their idiosyncratic production risks, rather than the arbitrary 5% blanket premium surcharge currently in use.  

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File URL: http://www.econ.iastate.edu/sites/default/files/publications/papers/p11528-2010-05-23.pdf
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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 31528.

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Date of creation: 23 May 2010
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Handle: RePEc:isu:genres:31528
Contact details of provider: Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
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Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
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