Factors Influencing Farmers' Crop Insurance Decisions

By B. Sherrick, P. Barry, P. Ellinger, G. Schnitkey. American Journal of Agricultural Economics, 2004

337 citations recorded by the source corpus.

Farmers' decisions to purchase crop insurance and their choices among alternative products are analyzed using a two‐stage estimation procedure. The influences of risk perceptions, competing risk management options, as well structural and demographic differences are evaluated. The likelihood for crop insurance usage is found to be higher for larger, older, less tenured, more highly leveraged farms, and by those with higher perceived yield risks. The marginal effects of size, age, perceived yield risk, perceived importance of risk management activities, and other structural and demographic variables are identified in terms of their influences on choices among alternative crop insurance products.

Subfields: Economics and Econometrics, General Health Professions, Soil Science

View Paper: https://www.semanticscholar.org/paper/66b38a5a774f22ded09d1d8a770afc6f1975890c

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In Economics and Econometrics

In General Health Professions

In Soil Science

Citations in the corpus

Rationality of Choices in Subsidized Crop Insurance Markets (2017, background): “Most of the considerable body of research on U.S. crop insurance has focused on issues related to product design, rate-setting, and farmers’ participation decisions (e.g., Goodwin 2001; Sherrick et al. 2004; Norwood, Roberts, and Lusk 2004).”
Effects of Crop Insurance Premium Subsidies on Crop Acreage (2018, background): “…insurance providers with the approval of the FCIC; the FCIC and the RMA set premiums and 2 There is also an extensive body of literature on demand for U.S. crop insurance (e.g. Goodwin 1993; Just, Calvin, and Quiggin 1999; Sherrick et al. 2004; Babcock 2015; and Du, Feng, and Hennessy 2016).”
Crop Insurance as a Strategy for Adapting to Climate Change (2014, result): “This result is in line with the literature (see, for example, Sherrick et al., 2004). Smith and Baquet (1996) claim that most studies have found a positive association between farm size and participation in the federally subsidised multiple-peril crop insurance (MPCI) programme operated”