This research re-evaluates producer risk management decisions regarding the choice of forward pricing strategies when governmentally subsidised crop insurance designs and price supports are available. An analytical model is developed to illustrate the substitution of loan programmes for hedging....

This study examines U.S. crop producers’ perceptions of climate change, its effects on crop agriculture, and likely ways farmers would adapt to weather extremes. Based on a survey of crop producers in four states, we find that a significant proportion of farmers do not perceive that...

Purpose – This article seeks to examine the reference yield calculation method used in crop insurance rating and provides recommendations that could potentially improve actuarial performance of the Federal crop insurance program. Design/methodology/approach – Conceptual, numerical, and...

Purpose – The purpose of this research is to investigate the degree to which trends and structural change may have altered crop insurance expected loss cost ratios across time. Because loss experience is used to set rates for the program, these changes can impact the premiums paid by producers...

Purpose – The purpose of this paper is to be an academic inquiry into rating issues confronted by the US Federal Crop Insurance program stemming from changes in participation rates as well as the weighting of data to reflect longer‐run weather patterns. Design/methodology/approach – The...

Passage of the 1996 Farm Bill marked a dramatic departure in federal farm policy as the longstanding deficiency payment program was replaced with non‐risk responsive transition payments. In light of the departure, subsidized savings has been proposed as a mechanism to provide risk protection...