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The Potential for Revenue Insurance Policies in the South

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  • Skees, Jerry R.
  • Harwood, Joy
  • Somwaru, Agapi
  • Perry, Janet

Abstract

The 1996 Farm Act and the 1994 Crop Insurance Reform Act are recent examples of policy changes that have increased risks for U.S. farmers. New products are emerging to help farmers manage risks. This article examines some of the policy changes, farmer responses, and new risk-sharing products. The focus turns to the new revenue insurance products and their potential in the South. While there are reasons to believe revenue insurance should be attractive in the South, any revenue products that use existing crop insurance rates will face difficulties since poor actuarial performance in the South has resulted in relatively high rates.

Suggested Citation

  • Skees, Jerry R. & Harwood, Joy & Somwaru, Agapi & Perry, Janet, 1998. "The Potential for Revenue Insurance Policies in the South," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 30(1), pages 47-61, July.
    • Handle: RePEc:cup:jagaec:v:30:y:1998:i:01:p:47-61_00
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    References listed on IDEAS

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    1. Jerry R. Skees & J. Roy Black & Barry J. Barnett, 1997. "Designing and Rating an Area Yield Crop Insurance Contract," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 430-438.
    2. Joy Harwood & Agapi Somwaru, 1997. "Implications of Disaster Assistance Reform for Non-insured Crops," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 419-429.
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    Cited by:

    1. Wang, H. Holly & Zhang, Hao, 2002. "Using The Spatial Statistics Approach To Analyze Yield Risk Pooling In The Us," 2002 Annual meeting, July 28-31, Long Beach, CA 19633, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Angelo Frascarelli & Simone Del Sarto & Giada Mastandrea, 2021. "A New Tool for Covering Risk in Agriculture: The Revenue Insurance Policy," Risks, MDPI, vol. 9(7), pages 1-16, July.
    3. Allan W. Gray & Michael D. Boehlje & Brent A. Gloy & Stephen P. Slinsky, 2004. "How U.S. Farm Programs and Crop Revenue Insurance Affect Returns to Farm Land," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 238-253.
    4. Ashok Mishra & Barry Goodwin, 2006. "Revenue insurance purchase decisions of farmers," Applied Economics, Taylor & Francis Journals, vol. 38(2), pages 149-159.
    5. Mekonnen, Tigist, 2017. "Willingness to pay for agricultural risk insurance as a strategy to adapt climate change," MERIT Working Papers 2017-028, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Meuwissen, Miranda P.M. & Huirne, Ruud B.M. & Hardaker, J. Brian, 1999. "Perceptions Of Risks And Risk Management Strategies; An Analysis Of Dutch Livestock Farmers," 1999 Annual meeting, August 8-11, Nashville, TN 21507, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Fields, Deacue & Gillespie, Jeffrey M., 2003. "Beef Producer Preferences And Purchase Decisions For Livestock Revenue Insurance Products," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35089, Southern Agricultural Economics Association.
    8. Abel Tiemtore, 2021. "Examining the effects of agricultural income insurance on farmers in Burkina Faso," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 46(3), pages 422-439, July.
    9. Vedenov, Dmitry V. & Power, Gabriel J., 2008. "Risk-Reducing Effectiveness of Revenue versus Yield Insurance in the Presence of Government Payments," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(2), pages 1-17, August.
    10. Anderson, Jock R., 2003. "Risk in rural development: challenges for managers and policy makers," Agricultural Systems, Elsevier, vol. 75(2-3), pages 161-197.
    11. Ozaki, Vitor Augusto & Adami, Andreia Cristina de Oliveira, 2013. "Managing the Agricultural Revenue Risk in Brazil: Implications for Developing a Crop Insurance Program," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151289, Agricultural and Applied Economics Association.
    12. Finger, Robert, 2012. "How strong is the “natural hedge”? The effects of crop acreage and aggregation levels," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122538, European Association of Agricultural Economists.

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