IMPLICATIONS OF CROP INSURANCE FOR FARMERS AND LENDERS

David Leatham (), Bruce McCarl and James Richardson ()

Southern Journal of Agricultural Economics, 1987, vol. 19, issue 2, 8

Abstract: The effect of the farmer's choice of crop insurance was evaluated on both the farmer's and lender's performance. This was done using whole-farm, Monte Carlo simulation for Texas wheat/sorghum operations. Results indicate crop insurance would be preferred by moderately risk-averse farmers when farm firm failure became an issue or the insurance loss ration approached one. A lender always preferred the use of crop insurance, especially when the probability of firm bankruptcy was an issue.

Keywords: Risk; and; Uncertainty (search for similar items in EconPapers)
Date: 1987
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Implications of Crop Insurance for Farmers and Lenders (1987)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:sojoae:30193

DOI: 10.22004/ag.econ.30193

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