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Farmers' Preferences for Alternative Crop and Health Insurance Subsidy

William Nganje, Bob Hearne (), Cole Gustafson and Michael Orth

Review of Agricultural Economics, 2008, vol. 30, issue 2, 333-351

Abstract: In addition to production risks, farmers desire to balance personal risks of health care. A theoretical framework is developed for holistic health and crop insurance products that provide the opportunity to switch a portion of existing crop insurance subsidy for greater health coverage. A random utility discrete choice experiment is used to assess farmers' stated preferences for holistic insurance products. Farmers prefer higher levels of coverage and are price sensitive. A sample of farmers did not prefer the subsidy switch. However, the subsidy switch is preferred by older farmers, those with higher health care spending, and farmers who have experienced major health problems. Copyright 2008, Oxford University Press.

Date: 2008
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Handle: RePEc:oup:revage:v:30:y:2008:i:2:p:333-351