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Alternative Crop Insurance Indexes

Published online by Cambridge University Press:  26 January 2015

Xiaohui Deng ,
Barry J. Barnett ,
Gerrit Hoogenboom ,
Yingzhuo Yu  and
Axel Garcia y Garcia
Xiaohui Deng
Affiliation:
Department of Agricultural Economics, California State University, Fresno, CA
Barry J. Barnett
Affiliation:
Department of Agricultural and Applied Economics, The University of Georgia, Athens, GA
Gerrit Hoogenboom
Affiliation:
Department of Biological and Agricultural Engineering, The University of Georgia
Yingzhuo Yu
Affiliation:
Department of Agricultural and Applied Economics, The University of Georgia, Athens, GA
Axel Garcia y Garcia
Affiliation:
Department of Biological and Agricultural Engineering, The University of Georgia
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Abstract

Three index-based crop insurance contracts are evaluated for representative south Georgia corn farms. The insurance contracts considered are based on indexes of historical county yields, yields predicted from a cooling degree-day production model, and yields predicted from a crop-simulation model. For some of the representative farms, the predicted yield index contracts provide yield risk protection comparable to the contract based on historical county yields, especially at lower levels of risk aversion. The impact of constraints on index insurance choice variables is considered and important interactions among constrained, conditionally optimized, choice variables are analyzed.

Keywords

area yield insurancecooling degree daysDSSATgroup risk planG13G22Q12
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 40 , Issue 1 , April 2007 , pp. 223 - 237
Copyright
Copyright © Southern Agricultural Economics Association 2008

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