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Identifying Farmer Characteristics Related To Crop Insurance Purchase Decisions

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  • Black, Dawn L.
  • Dorfman, Jeffrey H.

Abstract

Crop insurance is an area of federal agricultural policy that has been a source of continual calls for reform and improvement, yet there are a limited number of empirical studies examining farmers' insurance purchase decisions. As far as we are aware, this study is the first to utilize farm level data from the Southeastern U.S. We look at the farmer's decision to purchase or not purchase crop insurance using data from Georgia cotton and peanut farmers. We find that farmers appear to do a good job of weighing the benefits of crop insurance against alternative forms of self-insuring and risk-diversification.

Suggested Citation

  • Black, Dawn L. & Dorfman, Jeffrey H., 2000. "Identifying Farmer Characteristics Related To Crop Insurance Purchase Decisions," 2000 Annual meeting, July 30-August 2, Tampa, FL 21831, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea00:21831
    DOI: 10.22004/ag.econ.21831
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    References listed on IDEAS

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    1. Goodwin, Barry K. & Ker, Alan P., 1998. "Revenue Insurance: A New Dimension in Risk Management," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 13(4), pages 1-4.
    2. Keith H. Coble & Thomas O. Knight & Rulon D. Pope & Jeffery R. Williams, 1996. "Modeling Farm-Level Crop Insurance Demand with Panel Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 439-447.
    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).
    4. Barry Barnett & Jerry Skees, 1994. "An Empirical Analysis of the Demand for Multiple Peril Crop Insurance: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 948-951.
    5. Barnett, Barry J. & Skees, Jerry R. & Hourigan, James D., 1990. "Explaining Participation in Federal Crop Insurance," 1990 Annual meeting, August 5-8, Vancouver, Canada 270875, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Vincent H. Smith & Barry K. Goodwin, 1996. "Crop Insurance, Moral Hazard, and Agricultural Chemical Use," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 428-438.
    7. Vincent H. Smith & Alan E. Baquet, 1996. "The Demand for Multiple Peril Crop Insurance: Evidence from Montana Wheat Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 189-201.
    8. Barry K. Goodwin, 1993. "An Empirical Analysis of the Demand for Multiple Peril Crop Insurance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(2), pages 425-434.
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    Cited by:

    1. Mbonane, Nobuhle Duduzile, 2018. "An analysis of farmers’ preferences for crop insurance: a case of maize farmers in Swaziland," Research Theses 334771, Collaborative Masters Program in Agricultural and Applied Economics.
    2. Fahad, Shah & Wang, Jing & Hu, Guangyin & Wang, Hui & Yang, Xiaoying & Shah, Ashfaq Ahmad & Huong, Nguyen Thi Lan & Bilal, Arshad, 2018. "Empirical analysis of factors influencing farmers crop insurance decisions in Pakistan: Evidence from Khyber Pakhtunkhwa province," Land Use Policy, Elsevier, vol. 75(C), pages 459-467.
    3. Awais Jabbar & Qun Wu & Jianchao Peng & Ali Sher & Asma Imran & Kunpeng Wang, 2020. "Mitigating Catastrophic Risks and Food Security Threats: Effects of Land Ownership in Southern Punjab, Pakistan," IJERPH, MDPI, vol. 17(24), pages 1-18, December.
    4. Bruce J. Sherrick & Gary D. Schnitkey & Paul N. Ellinger & Peter J. Barry & Brian Wansink, 2003. "Farmers' Preferences for Crop Insurance Attributes," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(2), pages 415-429.

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    Risk and Uncertainty;

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