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Willingness to pay for agricultural yield insurance is affected by starting point bias

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  • Myyrä, Sami
  • Liesivaara, Petri

Abstract

Approach to agriculture risk management has extended in the EU and the possibilities of public support for yield risk management have increased. Crop insurance products are supported in EU’s Common Agricultural policy (CAP). The problem in policymaking is finding the balance between crop insurance supply and demand, because adequate data on farm-specific yield density functions are rarely available. We used a choice experiment (CE)to evaluate the willingness of farmers to buy crop insurance products. Demand for crop insurances was revealed, but we found that farmers anchor their willingness to pay for crop insurances to the price levels introduced.

Suggested Citation

  • Myyrä, Sami & Liesivaara, Petri, 2014. "Willingness to pay for agricultural yield insurance is affected by starting point bias," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182855, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182855
    DOI: 10.22004/ag.econ.182855
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    Cited by:

    1. Sibiko, Kenneth W. & Veettil, Prakashan C. & Qaim, Matin, 2016. "Small Farmers’ Preferences for Weather Index Insurance: Insights from Kenya," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246399, African Association of Agricultural Economists (AAAE).
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    3. Apurba Shee & Calum G. Turvey & Ana Marr, 2021. "Heterogeneous Demand and Supply for an Insurance‐linked Credit Product in Kenya: A Stated Choice Experiment Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(1), pages 244-267, February.

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