Revenue Protection for Organic Producers: Too Much or Too Little

Ariel Singerman, Chad Hart and Sergio Lence

No 124370, 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington from Agricultural and Applied Economics Association

Abstract: A framework is developed to examine organic crop insurance established by the Risk Management Agency (RMA). Given that RMA links organic and conventional crop prices, the model is calibrated to reflect both markets to illustrate the impacts that pricing has on insurance coverage. Findings indicate that at the 75% coverage level, RMA's fixed price factor implies an effective coverage ranging from 45% to 106% depending on the ratio of planting-time organic to conventional market prices. Results suggest RMA's program is likely to induce adverse selection, because the nominal coverage level is likely to substantially deviate from the effective coverage.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Pages: 37
Date: 2012
New Economics Papers: this item is included in nep-agr and nep-ias
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Citations: View citations in EconPapers (9)

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Related works:
Journal Article: Revenue Protection for Organic Producers: Too Much or Too Little? (2012)
Working Paper: Revenue Protection for Organic Producers: Too Much or Too Little (2012)
Working Paper: Revenue Protection for Organic Producers: Too Much or Too Little? (2012)
Working Paper: Revenue protection for organic producers: too much or too little (2012)
Working Paper: Revenue Protection for Organic Producers: Too Much or Too Little (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea12:124370

DOI: 10.22004/ag.econ.124370

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