An Empirical Analysis of the Demand for Multiple Peril Crop Insurance

Goodwin, Barry K.

doi:10.2307/1242927

Cited by 236 publications

(208 citation statements)

References 8 publications

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“…Goodwin (2001) Barnett, Skees, and Hourigan (1990), Goodwin (1993) and Cannon and Barnett (1995)). This result may reflect the greater marketing effort concentrated by insurance marketers on larger farms (Goodwin 2001).…”

Section: Resultsmentioning

confidence: 99%

“…Following previous analyses on the demand for crop insurance, we assume that insurance purchases will be influenced by a number of farm characteristics, as well as by parameters of the 2 Barnett, Skees, and Hourigan (1990), Goodwin (1993) and Cannon and Barnett (1995) are examples of econometric analyses of crop insurance participation prior to the 1994 Reform Act that use aggregate data. Calvin (1990), Calvin (1992), Smith and Baquet (1996), Smith and Goodwin (1996), Coble et al (1996) and Just, Calvin and Quiggin (1999) analyze pre-1994 crop insurance participation through econometric studies based on farm-level data (see Knight and Coble (1997) for a thorough review of the literature on the demand for Multi Peril Crop Insurance).…”

Section: Econometric Methodsmentioning

confidence: 99%

“…Our selection of relevant variables follows a number of earlier analyses of the demand for crop insurance (see for example Just and Calvin (1990), Horowitz and Lichtenberg (1993), Goodwin (1993), Smith and indicator of participation in crop insurance programs. 5 Specifically, this is a discrete dependent variable equal to 1 if the farm insures any of its crop production in year t and equal to zero otherwise.…”

Section: Data and Empirical Applicationmentioning

confidence: 99%

“…In particular, it allows us to discern whether farmers with more variable (risky) yields tend to have less elastic responses to premium rate changes (as theory would suggest). A similar specification was considered in Goodwin (1993), Smith and Goodwin (1996), and Goodwin (2001). The mean normalized yields are also included as an explanatory variable.…”

Section: Data and Empirical Applicationmentioning

confidence: 99%

See 3 more Smart Citations

Modeling changes in the U.S. demand for crop insurance during the 1990s

Serra¹,

Goodwin²,

Featherstone³

2003

Agricultural Finance Review

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The crop insurance purchase decision for a group of Kansas farmers is analyzed using farm‐level data from the 1990s, a period that experienced many changes in the federal crop insurance program. Results indicate a reduction in the elasticity of the demand for crop insurance with respect to premium rates by the end of the decade. The reduction in demand elasticity corresponded with a considerable increase in government subsidies by the end of the 1990s. This result may also reflect the attractiveness of new revenue insurance products which may have made producers less sensitive to premium changes.

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Section: Resultsmentioning

confidence: 99%

Section: Econometric Methodsmentioning

confidence: 99%

Section: Data and Empirical Applicationmentioning

confidence: 99%

Section: Data and Empirical Applicationmentioning

confidence: 99%

See 2 more Smart Citations

Modeling changes in the U.S. demand for crop insurance during the 1990s

Serra¹,

Goodwin²,

Featherstone³

2003

Agricultural Finance Review

Self Cite

View full text Add to dashboard Cite

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“…The doubts give rise to the twin problems of opportunistic behaviour, namely adverse selection and moral hazard in insurance that could be expensive to control [12,13]. These twin problems have been identified as the bane of private sector investment in the business.…”

Section: Introductionmentioning

confidence: 99%

Econometric analysis of the impact of agricultural insurance of farming systems in the middle belt, Nigeria.

Olubiyo¹,

Hill²,

Webster³

2009

African Journal of Food, Agriculture, Nutrition and Development

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Agriculture continues to dominate economic development policy in many developing countries. This is hardly surprising given the high proportion of the population of such countries that derive their livelihood from agriculture and related activities. What is surprising in many of the countries is the failure of the policy to deliver the sustained supplies of food and industrial raw materials as intended. In part this may have occurred because they failed to address the inability of the peasant farmers to withstand the increased risks associated with the adoption of commercial farming practices. Agricultural insurance is seen as one of the best strategies to address farm risks and encourage farmers to embrace modern production practices with greater potential for better and quality yields. In Nigeria, the Government introduced agricultural insurance programme with the tripartite aim of broadening farmers' access to farm resources, positively changing farmers' attitude to risk in their choice of resource use and to achieve increased food supplies in the market. Different factors can be identified that influence farmers' behaviour especially making decisions that relate to farm production, vis-à-vis choice of enterprise, its combination, the type and level of resources used in a given farming season. This study was carried out to examine whether agricultural insurance exerted any significant influence on the farming practices in the country. This study tests the broad hypothesis that farmers who purchase insurance increase their exposure to risk by adopting modern farming practices and achieved increase in resource productivity. The study found that the sampled farmers differ in their use of farm resources and the level of output produced. A higher proportion of insured farmers applied improved farming practices and were more commercially oriented. The insured farmers ventured into more risky enterprises and released a greater proportion of their output to the market for sale. However, contrary to expectations, uninsured farmers were found to be more productive and efficient in their resource use than the insured farmers.

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Preferences for crop insurance when farmers are diversified

Blank

McDonald

1996

Agribusiness

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The government intends to rely on an insurance‐based solution to yield risk. Therefore, it is important to identify which characteristics most affect a grower's decision regarding whether or not to use crop insurance. This case study uses California cross‐sectional survey data to directly compare the relative effects of three types of characteristics that are expected to influence insurance preferences. In general, results from the model estimated indicate that preferences for crop insurance are a function of the commodities produced and the risk environment faced by individual growers. © 1996 John Wiley & Sons, Inc.

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An Empirical Analysis of the Demand for Multiple Peril Crop Insurance

Cited by 236 publications

References 8 publications

Modeling changes in the U.S. demand for crop insurance during the 1990s

Modeling changes in the U.S. demand for crop insurance during the 1990s

Econometric analysis of the impact of agricultural insurance of farming systems in the middle belt, Nigeria.

Preferences for crop insurance when farmers are diversified

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