College of Agriculture

Permanent URI for this communityhttps://scholarworks.montana.edu/handle/1/4

As the foundation of the land grant mission at Montana State University, the College of Agriculture and the Montana Agricultural Experiment Station provide instruction in traditional and innovative degree programs and conduct research on old and new challenges for Montana’s agricultural community. This integration creates opportunities for students and faculty to excel through hands-on learning, to serve through campus and community engagement, to explore unique solutions to distinct and interesting questions and to connect Montanans with the global community through research discoveries and outreach.

Browse

Author: search.filters.author.Adhikari, SubodhSubject: search.filters.subject.Agriculture

Search Results

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Evaluation of Crop Insurance Yield Guarantees and Producer Welfare with Upward Trending Yields
    (2012-12) Adhikari, Subodh; Knight, T. O.; Belasco, Eric J.
    Actual Production History (APH) yields play a critical role in determining the coverage offered to producers by the Risk Management Agency’s yield-based crop insurance products. Using both county and individual insured unit data, we examine the impact of APH yield trends for Texas cotton and Illinois corn. Our findings indicate that biases due to using simple average APH yields when yields are trending upward reduce the expected indemnity and actuarially fair premium rate. The estimated welfare effect also varies significantly with different commonly used detrending approaches. This study demonstrates that producer welfare can be enhanced through proper treatment of yield trends in crop insurance programs.
Copyright (c) 2002-2022, LYRASIS. All rights reserved.