EconPapers    
Economics at your fingertips  
 

Revenue Protection for Organic Producers: Too Much or Too Little

Ariel Singerman, Chad Hart () and Sergio Lence

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: A framework is developed to examine the 2011 pilot program established by the Risk Management Agency (RMA) to insure organic crops. Given that for insurance purposes RMA links organic crop prices to their conventional counterparts by a fixed percentage, we calibrate our model to reflect the organic and conventional corn markets to illustrate the impacts that such pricing potentially has on Revenue Protection coverage under different scenarios. Findings indicate that at the 75% nominal coverage level, RMA's fixed price factor implies an effective coverage ranging from 45 to 106% depending on what the organic to conventional market price ratio is; resulting, therefore, in lower and higher indemnities compared to those organic producers should get when considering their idiosyncratic revenue distribution.

Keywords: crop insurance; organic production; revenue protection (search for similar items in EconPapers)
JEL-codes: Q12 Q14 (search for similar items in EconPapers)
Date: 2011-06-22
New Economics Papers: this item is included in nep-agr
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Revenue Protection for Organic Producers: Too Much or Too Little? (2012) Downloads
Working Paper: Revenue Protection for Organic Producers: Too Much or Too Little (2012) Downloads
Working Paper: Revenue Protection for Organic Producers: Too Much or Too Little (2012)
Working Paper: Revenue Protection for Organic Producers: Too Much or Too Little? (2012) Downloads
Working Paper: Revenue protection for organic producers: too much or too little (2012) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:33912

Access Statistics for this paper

More papers in Staff General Research Papers Archive from Iowa State University, Department of Economics Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070. Contact information at EDIRC.
Bibliographic data for series maintained by Curtis Balmer ().

 
Page updated 2022-01-15
Handle: RePEc:isu:genres:33912