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Preferences for crop insurance when farmers are diversified

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  • Blank, Steven C.
  • McDonald, Jeffrey

Abstract

The government intends to rely on an insurance-based solution to yield risk, therefore, it is important to identify which characteristics most effect a grower's decision regarding whether or not to use crop insurance. This case study uses California cross sectional survey data to directly compare the relative effects of three types of characteristics which are expected to influence insurance preferences. In general, results from the model estimated indicate that preferences for crop insurance are a function of both the commodities produced and the risk environment faced by individual growers.

Suggested Citation

  • Blank, Steven C. & McDonald, Jeffrey, 1995. "Preferences for crop insurance when farmers are diversified," WAEA/ WFEA Conference Archive (1929-1995) 291738, Western Agricultural Economics Association.
    • Handle: RePEc:ags:waeaar:291738
    DOI: 10.22004/ag.econ.291738
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    1. Knight, Thomas O. & Lovell, Ashley C. & Rister, M. Edward & Coble, Keith H., 1989. "An Analysis Of Lenders' Influence On Agricultural Producers' Risk Management Decisions," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(2), pages 1-13, December.
    2. Liapis, Peter S. & Moffitt, L. Joe, 1983. "Economic Analysis Of Cotton Integrated Pest Management Strategies," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 15(1), pages 1-6, July.
    3. Blank, Steven C., 1990. "Returns To Limited Crop Diversification," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(2), pages 1-9, December.
    4. Liapis, Peter S. & Moffitt, L. Joe, 1983. "Economic Analysis of Cotton Management Strategies Integrated Pest," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 15(1), pages 97-102, July.
    5. Bernard V. Tew & Donald W. Reid & Giles T. Rafsnider, 1992. "Rational Mean-Variance Decisions for Subsistence Farmers," Management Science, INFORMS, vol. 38(6), pages 840-845, June.
    6. Calvin, Linda, 1992. "Participation in the U.S. Federal Crop Insurance Program," Technical Bulletins 312329, United States Department of Agriculture, Economic Research Service.
    7. 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. F. G. Santeramo & B. K. Goodwin & F. Adinolfi & F. Capitanio, 2016. "Farmer Participation, Entry and Exit Decisions in the Italian Crop Insurance Programme," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 639-657, September.
    3. Geoffroy Enjolras & Patrick Sentis, 2008. "The main determinants of insurance purchase. An empirical study on crop insurance policies in France," Working Papers 08-06, LAMETA, Universtiy of Montpellier, revised Apr 2008.
    4. Mohammed, M.A. & Ortmann, Gerald F., 2005. "Factors influencing adoption of livestock insurance by commercial dairy farmers in three Zobatat of Eritrea," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(2), pages 1-15, June.
    5. Di Falco, Salvatore & Capitanio, Fabian & Adinolfi, Felice, 2011. "Natural Vs Financial Insurance in the Management of Weather Risk Exposure in the Italian Agriculture," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114325, European Association of Agricultural Economists.
    6. Dimitar Nikolov & Sergio Gomez-y-Paloma & Minka Chopeva & Marianne Lefebvre, 2014. "Main Factors of the Development and Attractiveness of the Insurance Market for the Agricultural Companies," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 99-121.
    7. Fabio G., Santeramo & Ilaria, Russo & Emilia, Lamonaca, 2022. "Italian subsidised crop insurance: what the role of policy changes," MPRA Paper 115299, University Library of Munich, Germany.
    8. Lee, Hyunok & Blank, Steven C., 2004. "A Statistical Profile of Horticultural Crop Farm Industries in California," Research Reports 251934, University of California, Davis, Giannini Foundation.
    9. H. Douglas Jose & Ram S. K. Valluru, 1997. "Insights from the Crop Insurance Reform Act of 1994," Agribusiness, John Wiley & Sons, Ltd., vol. 13(6), pages 587-598.
    10. Akter, Sonia & Brouwer, Roy & Chowdhury, Saria & Aziz, Salina, 2008. "Determinants of Participation in a Catastrophe Insurance Programme: Empirical Evidence from a Developing Country," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 5984, Australian Agricultural and Resource Economics Society.
    11. Ali, Jabir & Kapoor, Sanjeev, 2008. "Farmers' perception on risks in fruits and vegetables production: an empirical study of Uttar Pradesh," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 21(Conferenc).

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