Hostname: page-component-7c8c6479df-xxrs7 Total loading time: 0 Render date: 2024-03-28T20:01:01.129Z Has data issue: false hasContentIssue false

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

Published online by Cambridge University Press:  28 April 2015

Thomas O. Knight
Affiliation:
Department of Agricultural Economics, Texas A&M University, College Station, Texas
Keith H. Coble
Affiliation:
Department of Agricultural Economics, Mississippi State University, Mississippi State, Mississippi
Get access

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.

Type
Articles
Copyright
Copyright © Southern Agricultural Economics Association 1999

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Commission for the Improvement of the Federal Crop Insurance Program. Recommendations and Findings to Improve the Federal Crop Insurance Program. Washington, DC, July 1989.Google Scholar
Gardner, B.L., and Kramer, R.A.. “Experience with Crop Insurance Programs in the United States.” Crop Insurance for Agricultural Development, Issues, and Experience. Hazell, Peter, Pomareda, Carlos, and Valdes, Alberto (eds), pp. 195222. Baltimore: Johns Hopkins University Press, 1986.Google Scholar
Glickman, D.Remarks of Secretary Dan Glickman: 1998 Agricultural Outlook.” USDA Agricultural Outlook Forum, February 23, 1998.Google Scholar
Goodwin, B.K.Premium Rate Determination in the Federal Crop Insurance Program: What Do Averages Have to Say About Risk?Journal of Agricultural and Resource Economics 19(December 1994):382395.Google Scholar
Goodwin, B.K., and Smith, V.H.. The Economics of Crop Insurance and Disaster Aid. Washington, DC: AEI Press, 1995.Google Scholar
Knight, T.O., and Coble, K.H.. “Survey of Multiple Peril Crop Insurance Literature Since 1980.Review of Agricultural Economics 19(Spring/Summer 1997): 128156.CrossRefGoogle Scholar
Shurle, B.The Impact of Size on Yield Variability and Crop Insurance Premiums.Review of Agricultural Economics 18(September 1996):415422.Google Scholar
Skees, J.R., and Reed, M.R.. “Rate Making for Farm-Level Crop Insurance: Implications for Adverse Selection.American Journal of Agricultural Economics 68(August 1986):653659.CrossRefGoogle Scholar