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The Utility Of Multiple Peril Crop Insurance For Irrigated, Multiple-Crop Agriculture

Author

Listed:
  • Zering, Kelly D.
  • McCorkle, C.O., Jr.
  • Moore, Charles V.

Abstract

The usefulness of FCIC multiple peril crop insurance on diversified, irrigated, high yielding farms in the Imperial Valley is examined. Production data and expected price and yield distributions were collected from thirty-two farm managers in 1982. Individual whole-farm net income distributions then were used to elicit their risk preferences. Participation in FCIC crop insurance for cotton, wheat, and sugar beets under the existing program and under several alternatives was predicted. Predicted participation never exceeds 25% of eligible growers. Low maximum yield guarantees and premiums inconsistent with individual yield experience are identified as factors limiting participation.

Suggested Citation

  • Zering, Kelly D. & McCorkle, C.O., Jr. & Moore, Charles V., 1987. "The Utility Of Multiple Peril Crop Insurance For Irrigated, Multiple-Crop Agriculture," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 12(1), pages 1-10, July.
    • Handle: RePEc:ags:wjagec:32470
    DOI: 10.22004/ag.econ.32470
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    References listed on IDEAS

    as
    1. Meyer, Jack, 1977. "Choice among distributions," Journal of Economic Theory, Elsevier, vol. 14(2), pages 326-336, April.
    2. Robert P. King & George E. Oamek, 1983. "Risk Management by Colorado Dryland Wheat Farmers and the Elimination of the Disaster Assistance Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(2), pages 247-255.
    3. King, Robert P., 1979. "Operational Techniques for Applied Decision Analysis Under Uncertainty," AAEA Fellows - Dissertations and Theses, Agricultural and Applied Economics Association, number 181951, December.
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    Cited by:

    1. Toland, Gerald Jr & Schmiesing, Brian H. & Black, J. Roy, 1989. "Analysis and Comparison of Alternative Estimations of Crop Yield Probability Distributions," WAEA/ WFEA Conference Archive (1929-1995) 244976, Western Agricultural Economics Association.
    2. Becker, N., 1999. "A comparative analysis of water price support versus drought compensation scheme," Agricultural Economics, Blackwell, vol. 21(1), pages 81-92, August.
    3. Edelman, Mark A. & Schmiesing, Brian H. & Khajasteh, Khosrow, 1990. "Effects of Disaster Assistance on Multiple Peril Crop Insurance Purchases by Iowa Crop Farmers," 1990 Annual meeting, August 5-8, Vancouver, Canada 271048, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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