The Effects of Transitional Yields on Adverse Selection in Crop Insurance

Cory Walters (), C. Shumway, Hayley Chouinard () and Philip Wandschneider ()

No 9849, 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: Transitional yields based on county average can be used by producers as the basis to obtain crop insurance on fields that have not previously produced the crop. Using field-level crop insurance contract data for several crops in five different growing regions we examine the impact of this asymmetric information on adverse selection. Our results indicate that adverse selection does exist from the use of transitional yields and that it is crop specific but not land-quality specific.

Keywords: Risk; and; Uncertainty (search for similar items in EconPapers)
Pages: 28
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea07:9849

DOI: 10.22004/ag.econ.9849

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