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On Choosing A Base Coverage Level For Multiple Peril Crop Insurance Contracts

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  • Ker, Alan P.
  • Coble, Keith H.

Abstract

For multiple peril crop insurance, the U.S. Department of Agriculture's Risk Management Agency estimates the premium rate for a base coverage level and then uses multiplicative adjustment factors to recover rates at other coverage levels. Given this methodology, accurate estimation of the base coverage level from 65% to 50%. The purpose of this analysis was to provide some insight into whether such a change should or should not be carried out. Not surprisingly, our findings indicate that the higher coverage level should be maintained as the base.

Suggested Citation

  • Ker, Alan P. & Coble, Keith H., 1998. "On Choosing A Base Coverage Level For Multiple Peril Crop Insurance Contracts," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(2), pages 1-18, December.
    • Handle: RePEc:ags:jlaare:31189
    DOI: 10.22004/ag.econ.31189
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    References listed on IDEAS

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    5. Myers, Robert J. & Jayne, Thomas S., 1997. "Regime shifts and technology diffusion in crop yield growth paths with an application to maize yields in Zimbabwe," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(3), pages 1-19.
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    Cited by:

    1. Ker, Alan P. & McGowan, Pat, 2000. "Weather-Based Adverse Selection And The U.S. Crop Insurance Program: The Private Insurance Company Perspective," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-25, December.

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    Keywords

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