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Actuarial Effects of Unit Structure in the U.S. Actual Production History Crop Insurance Program

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  • Knight, Thomas O.
  • Coble, Keith H.

Abstract

This paper examines the effects of optional subdivision on APHP losses for wheat, corn, and soybeans. Thirty-seven state/crop programs are analyzed and the implications of the results are discussed in relation to newly developed crop and revenue insurance programs. The results illustrate the importance of incorporating actuarial experience into the premium rate structure and contract provisions of an insurance program.

Suggested Citation

  • Knight, Thomas O. & Coble, Keith H., 1999. "Actuarial Effects of Unit Structure in the U.S. Actual Production History Crop Insurance Program," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 31(3), pages 519-535, December.
    • Handle: RePEc:cup:jagaec:v:31:y:1999:i:03:p:519-535_00
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    References listed on IDEAS

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    1. Vincent H. Smith & Barry K. Goodwin, 1995. "The Economics of Crop Insurance and Disaster Aid," Books, American Enterprise Institute, number 53374, September.
    2. Jerry R. Skees & Michael R. Reed, 1986. "Rate Making for Farm-Level Crop Insurance: Implications for Adverse Selection," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(3), pages 653-659.
    3. Thomas O. Knight & Keith H. Coble, 1997. "Survey of U.S. Multiple Peril Crop Insurance Literature Since 1980," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 19(1), pages 128-156.
    4. Goodwin, Barry K., 1994. "Premium Rate Determination In The Federal Crop Insurance Program: What Do Averages Have To Say About Risk?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(2), pages 1-14, December.
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    Cited by:

    1. Sharma, S. & Walters, C., 2018. "Influence of Farm and Lease Type on Crop Insurance Returns," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277399, International Association of Agricultural Economists.
    2. Rejesus, R. & Park, S. & Zheng, X. & Goodwin, G., 2018. "How does a Fraud Mitigation Program Influence Insurance Claims filing Behavior? Evidence from the "Spot Check List" Program in U.S. Crop Insurance," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277452, International Association of Agricultural Economists.
    3. Ying Cao & Yuehua Zhang, 2012. "Hog insurance adoption and suppliers' discrimination," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 4(2), pages 233-255, May.
    4. Joseph A. Atwood & James F. Robison-Cox & Saleem Shaik, 2006. "Estimating the Prevalence and Cost of Yield-Switching Fraud in the Federal Crop Insurance Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 365-381.
    5. Sungkwol Park & Barry K. Goodwin & Xiaoyong Zheng & Roderick M. Rejesus, 2020. "Contract elements, growing conditions, and anomalous claims behaviour in U.S. crop insurance," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 45(1), pages 157-183, January.
    6. Shaik, Saleem & Atwood, Joseph A., 2002. "Optional Unit Policy In Crop Insurance," 2002 Annual meeting, July 28-31, Long Beach, CA 19741, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Roderick M. Rejesus & Barry K. Goodwin & Keith H. Coble & Thomas O. Knight, 2010. "Evaluation of the reference yield calculation method in crop insurance," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 70(3), pages 427-445, November.
    8. Nathan D. DeLay & Hayley H. Chouinard & Cory G. Walters & Philip R. Wandschneider, 2020. "The influence of crop insurance agents on coverage choices: The role of agent competition," Agricultural Economics, International Association of Agricultural Economists, vol. 51(4), pages 623-638, July.
    9. Malini, Nair, 2005. "Arbitrage, Cointegration and Testing the Unbiasedness Hypothesis in Coffee Futures Traded at the CSCE," MPRA Paper 37857, University Library of Munich, Germany.
    10. Atwood, Joseph A. & Robinson-Cox, Jim & Shaik, Saleem, 2004. "A Statistical Examination Of Yield Switching Fraud In The Federal Crop Insurance Program," 2004 Annual meeting, August 1-4, Denver, CO 19983, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Sankalp Sharma & Cory G. Walters, 2020. "Influence of farm size and insured type on crop insurance returns," Agribusiness, John Wiley & Sons, Ltd., vol. 36(3), pages 440-452, June.

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