Designing and Rating an Area Yield Crop Insurance Contract

Jerry R. Skees, J. Roy Black and Barry Barnett

American Journal of Agricultural Economics, 1997, vol. 79, issue 2, 430-438

Abstract: This article documents the design and rate-making procedures used in the development of the Group Risk Plan (GRP)—the new federal crop insurance product that insures based on area yield. The authors of this article worked closely with personnel in the Federal Crop Insurance Corporation and others in developing methodological and practical constraints needed in implementing a workable area yield contract. GRP indemnity payments are made based on percentage shortfalls in actual county yields relative to a forecasted yield. Historical county yield data are used to develop forecasted yields and premium rates. Copyright 1997, Oxford University Press.

Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:79:y:1997:i:2:p:430-438

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