Farmers have increasingly been procuring external equity financing through either written or verbal business arrangements. Passage of the Agricultural Risk Protection Act in 2000 has resulted in widespread adoption of crop insurance among farmers. Crop insurance changes farmers’ production...

The implementation of index-based crop insurance is often impeded by the existence of systemic risk of insured losses. We assess the effectiveness of two strategies for coping with systemic risk: regional diversification and securitization with catastrophe (CAT) bonds. The analysis is conducted...

We analyze the current state and future requirements of an agricultural income stabilization mechanism in a transition country – namely, the crop insurance system in Kazakhstan. Three objectives will be pursued: First, factors influencing the development of the crop insurance market will be...

This paper reports SERF analysis to help rice landlords in the Upper Coastal Bend of Texas evaluate alternative crop insurance combinations of yield loss and prevented planting coverage levels given uncertainty related to surface irrigation water curtailment. For baseline and high curtailment...

Likely climate change impacts in the U.S. include damages to agricultural production resulting from increased exposure to extreme heat. However, considerable uncertainty remains regarding impacts on the performance of the Federal Crop Insurance Program. Here we utilized a large panel of corn...

Obtaining reliable estimates of insurance premiums is a critical step in risk sharing and risk transfer necessary to ensure solvency and continuity in crop insurance programs. Challenges encountered in the estimation include dealing with aggregation bias from using county level yield averages as...

The first 50 years of the Federal crop insurance program were marked by low enrollment levels. To boost program participation, legislation in 1994 and 2000 increased premium subsidies. In the years since, the jump in enrollment coupled with high commodity prices caused significant increases in...