This research investigates the potential effects of the row crop provisions of the standing disaster assistance program (SURE) in the 2008 Farm Bill. Results suggest little impact on producer crop insurance purchase decisions, though the program does seem to provide an incentive for mid-level...

Revenue insurance with shallow loss protection for farmers has been introduced recently. A common attribute of most shallow loss proposals is that they would be area-revenue triggered. The impact on optimal hedge ratios of combining these shallow loss insurance proposals with deep loss...

The risks confronted by grain and cotton farmers are of particular interest, given the changing role of the Government after passage of the 1996 Farm Act. With the shift toward less government intervention in the post-1996 Farm Act environment, a more sophisticated understanding of risk and risk...

Legislatively mandated declines in government program payments have coincided with sharp declines in most major crop commodity prices. Thus, a debate has begun about the direction of future farm policy. The debate has been largely expressed in terms of a "safety net" for producers. This paper...

The customizable area whole farm insurance (CAWFI) was designed and compared with no insurance program and currently available whole farm insurance based on farm level yield (CFWFI). The CAWFI yields higher certainty equivalents over no insurance program, but lower to CFWFI; CAWFI has fairly...

The US crop insurance program previously used a simple average of equally weighted historical loss cost data to serve as the backbone for estimating crop insurance premium rates. This article develops a procedure for weighting the historical loss cost experience based on longer time-series...

Producer revenue is simultaneously simulated for several hundred county-specific representative farms. The effects of current and alternative commodity programs are analyzed. In particular, two variations of revenue-triggered programs similar to plans proposed by the National Corn Growers...

This paper employs a cost function analysis method to investigate the existence of moral hazard in cotton buy-up insurance. The trans-log cost function estimates of the own-price elasticity of fertilizer, herbicide, and insecticide is -0.222, -0.143, and -0.121, respectively for Mississippi...

Introduction: The context of row crop risk management continues to grow more complex. While the magnitude of price and yield risk changes over time, the development of sophisticated risk management tools and complex government policies may improve growers’ ability to manage risk -- if these...