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Farmers' Preferences for Alternative Crop and Health Insurance Subsidy

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  • William Nganje
  • Robert Hearne
  • Cole Gustafson
  • Michael Orth

Abstract

In addition to production risks, farmers desire to balance personal risks of health care. A theoretical framework is developed for holistic health and crop insurance products that provide the opportunity to switch a portion of existing crop insurance subsidy for greater health coverage. A random utility discrete choice experiment is used to assess farmers' stated preferences for holistic insurance products. Farmers prefer higher levels of coverage and are price sensitive. A sample of farmers did not prefer the subsidy switch. However, the subsidy switch is preferred by older farmers, those with higher health care spending, and farmers who have experienced major health problems.

Suggested Citation

  • William Nganje & Robert Hearne & Cole Gustafson & Michael Orth, 2008. "Farmers' Preferences for Alternative Crop and Health Insurance Subsidy," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(2), pages 333-351.
    • Handle: RePEc:oup:revage:v:30:y:2008:i:2:p:333-351.
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    File URL: http://hdl.handle.net/10.1111/j.1467-9353.2008.00407.x
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    Cited by:

    1. William Nganje & Kwame Asiam Addey, 2019. "Health Uninsurance in rural America: a partial equilibrium analysis," Health Economics Review, Springer, vol. 9(1), pages 1-15, December.
    2. Johannes G. Jaspersen, 2016. "Hypothetical Surveys And Experimental Studies Of Insurance Demand: A Review," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 83(1), pages 217-255, January.

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