Risk Management Strategies in Humid Production Regions: A Comparison of Supplemental Irrigation and Crop Insurance

Timothy Dalton, Gregory A. Porter and Noah G. Winslow

Agricultural and Resource Economics Review, 2004, vol. 33, issue 2, 13

Abstract: Recent federal agricultural programs have accelerated the devolution of enterprise risk management responsibility from the state to individual producers. Using a biophysical simulation model, the risk management benefits of federal crop insurance and supplemental irrigation are derived and compared to uninsured rainfed crop production in an expected utility framework. Federal crop insurance programs are inefficient at reducing producer exposure to weather-related production risk in humid regions, and the risk management benefits from supplemental irrigation are found to be scale and technology dependent. Environmental policies that regulate resource development will increase the investment cost of irrigation alternatives and reduce economic feasibility.

Keywords: Risk; and; Uncertainty (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (15)

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Journal Article: Risk Management Strategies in Humid Production Regions: A Comparison of Supplemental Irrigation and Crop Insurance (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:arerjl:31269

DOI: 10.22004/ag.econ.31269

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