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Distributions Of Indemnities For Crop-Insurance Plans: With Application To Grain Crops In New South Wales

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  • Battese, George E.
  • Francisco, Emilio M.

Abstract

A review of crop-insurance schemes is followed by a discussion of a guaranteed-yield, crop-insurance plan. General formulae for the distribution function and mathematical expectation of indemnities for the insurance plan are presented in terms of the distribution of crop yields. Three special cases are considered in which the original yields, the square root of yields, and the logarithm of yields are normally distributed. The insurance plan is applied on a regional basis for wheat and sorghum production in N.S.W. Given distributional information on the crops obtained from a simulation model, expected indemnities are calculated for four different insurance plans.

Suggested Citation

  • Battese, George E. & Francisco, Emilio M., 1977. "Distributions Of Indemnities For Crop-Insurance Plans: With Application To Grain Crops In New South Wales," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(2), pages 1-13, August.
    • Handle: RePEc:ags:ajaeau:22485
    DOI: 10.22004/ag.econ.22485
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    References listed on IDEAS

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