Impact of government programs on producer demand for hedging

Maples, William E.; Giri, Anil K.; Coble, Keith H.; Subedi, Dipak

doi:10.1002/aepp.13241

Cited by 2 publications

(1 citation statement)

References 10 publications

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“…Some studies determine the insurance rate by establishing the relationship between the production of aquaculture products and natural factors, and some studies compare the differences of index insurance products in different study areas. [7][8][9][10]. The current study lacks a particular study of the insurance rates in a single aquacultural product in the entire eastern coastal area of China.…”

Section: Introductionmentioning

confidence: 99%

Research on the insurance of swimming crab temperature and salinity index insurance based on Copula function

Shi

Zhao

et al. 2022

PLoS ONE

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Under climate change, the sea surface temperature and salinity change greatly, which poses a considerable threat to sustainable food security. Sea surface temperature and salinity (SST/SSS) are selected to examine the annual output of swimming crab in 24 cities along the eastern China. The Copula-based function was used to construct the probability distribution model of the swimming crab yield with SST and SSS. The pure premium rate of the swimming crab production in these 24 cities are also examined. The results show that 1) There is significant positive correlations between the yield of swimming crab with temperature and salinity over the study area. The only exception is that the correlation between yield of swimming crab and salinity is not significant in the south of study area. 2) The span of the pure insurance premium rate of swimming crab in 24 cities increases rapidly with the increase of the protection level, the maximum span up to 2.04%, and the minimum span is only 1.6%. 3) The distribution of the swimming crab insurance premium rate is various in space. The insurance premium rate of 8 cities in the south of Taizhou is low with the highest premium rate at 5.6%. The insurance premium rate of 16 cities in north of Taizhou is relatively high with the rate between 6%-22%. The research can provide a theoretical basis for the pricing of insurance products for swimming crab in 24 cities in the typical aquaculture areas in eastern China.

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Section: Introductionmentioning

confidence: 99%

Research on the insurance of swimming crab temperature and salinity index insurance based on Copula function

Shi

Zhao

et al. 2022

PLoS ONE

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Evaluation of alternative farm safety net program combination strategies

Gaku,

Tsiboe

2024

AFR

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PurposeSeveral farm safety net strategies are available to farmers as a source of financial protection against losses due to price instability, government policies, weather fluctuations and global market changes. Producers can employ these strategies combining crop insurance policies with countercyclical policies for several crops and production areas; however, less is known about the efficiency of these strategies in enhancing profit and reducing its variability. In this study, we examine the efficiency of these strategies at minimizing inter crop year farm profit variability.Design/methodology/approachWe utilized relative mean of profit and coefficient of variation, to compare counterfactually calculated farm safety net strategies for a sample of 28,615 observations across 2,486 farms and four dryland crops (corn, soybean, sorghum and wheat) in Kansas spanning nine crop years (2014–2022). A no farm safety net strategy is used as the benchmark for every alternative strategy to ascertain whether a policy customization is statistically different from a no farm safety case.FindingsThe general pattern of the results suggests that program combination strategies that have a high-profit enhancement potential necessarily have low profit risk for dryland wheat and sorghum production. On the contrary, such a connection is absent for dryland corn and soybeans production. Low-cost farm safety net strategies that enhance corn and soybeans profits do not necessarily lower profit risks.Originality/valueThis paper is one of the first to use a large sample of actual farm-level observations to evaluate how combinations of safety net programs offered under the Title I (PLC, ARCCO and ARCIC) and XI (FCIP) of the U.S. Farm Bill rank in terms of profit level enhancement and profit risk reduction.

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Impact of government programs on producer demand for hedging

Cited by 2 publications

References 10 publications

Research on the insurance of swimming crab temperature and salinity index insurance based on Copula function

Research on the insurance of swimming crab temperature and salinity index insurance based on Copula function

Evaluation of alternative farm safety net program combination strategies

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