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Can Crop Insurance Premiums be Reliably Estimated?

Octavio Ramirez, Carlos Carpio () and Roderick Rejesus

No 49465, 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin from Agricultural and Applied Economics Association

Abstract: The objective of this paper is to compare the accuracy of crop insurance rating methods based on historical liability and indemnity data (similar to the procedure currently used by the Risk Management Agency) and “yield distribution” approaches. Estimated rates are compared to “true” rates using empirically-grounded simulation procedures that take into account common data availability constraints. Simulation results suggest that farm and county level rate estimates using the “yield distribution” approach are significantly more accurate than those based on historical indemnity and liability records.

Keywords: Agribusiness; Agricultural Finance; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 31
Date: 2009-04-30
New Economics Papers: this item is included in nep-cmp, nep-ias and nep-rmg
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http://ageconsearch.umn.edu/record/49465/files/ramirez_carpio_rejesus.pdf (application/pdf)

Related works:
Journal Article: Can Crop Insurance Premiums Be Reliably Estimated? (2011) Downloads
Journal Article: Can Crop Insurance Premiums Be Reliably Estimated? (2011) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea09:49465

DOI: 10.22004/ag.econ.49465

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