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Estimating Crop Yield Insurance Premium Rates

Author

Listed:
  • Dudek, Daniel J.
  • Allen, P. Geoffrey

Abstract

Insurance rates for crop yield protection programs have traditionally been calcu lated from county average yie lds. Where grower acreages and yields are not homogeneous, this approach leads to higher premiums and payouts and greater incidence of adverse selection . With individual grower data a production weighted rate premium calcu lation method ca~ be used which avoids these problems . Furthermore, the definition of rate classes is not constrained to county boundaries. The additional complication of technical change is addressed and one solution is provided. Results are presented for the cranberry industry.

Suggested Citation

  • Dudek, Daniel J. & Allen, P. Geoffrey, 1984. "Estimating Crop Yield Insurance Premium Rates," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 13(1), pages 1-9, April.
    • Handle: RePEc:ags:nareaj:159263
    DOI: 10.22004/ag.econ.159263
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    References listed on IDEAS

    as
    1. Ralph R. Botts & James N. Boles, 1958. "Use of Normal-Curve Theory in Crop Insurance Ratemaking," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 40(3), pages 733-740.
    2. Harold G. Halcrow, 1949. "Actuarial Structures for Crop Insurance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(3), pages 418-443.
    3. Martin H. Yeh & Roland Y. Wu, 1966. "Premium Ratemaking in an All Risk Crop Insurance Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 48(5), pages 1580-1586.
    4. Martin H. Yeh & Roland Y. Wu, 1966. "Premium Ratemaking In An All Risk Crop Insurance Program1," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 14(1), pages 40-49, March.
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