Premium rates and selection in specialty crop insurance markets: Evidence from the catastrophic coverage participation

Yu, Jisang; Sumner, Daniel A.; Lee, Hyunok

doi:10.1016/j.foodpol.2021.102079

Cited by 10 publications

(1 citation statement)

References 32 publications

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“…In turn, farmers tend to consider the coverage level when participating in crop insurance, which influences their production behaviour (Mol et al, 2020). The higher the coverage level of crop insurance, the more it helps to stabilise farmers' output expectations (Urruty et al, 2016; Yu et al, 2021). Therefore, farmers are more likely to reduce traditional agrochemical inputs and increase adoption of GAT (Möhring et al, 2020).…”

Section: Conceptual Frameworkmentioning

confidence: 99%

How crop insurance influences agrochemical input use: Evidence from cotton farmers in China

Mao

Chen

Rui-yao

et al. 2023

Aus J Agri & Res Econ

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Crop insurance is critical in risk management in global agricultural production (e.g. by helping stabilise farmers' incomes in the long term and reducing risk‐bearing costs). In this paper, using field survey data on cotton farmers in Xinjiang, China, we examine the influence of crop insurance on farmers' behaviours regarding agrochemical inputs and aim to investigate the synergy between crop insurance and reductions in fertiliser and pesticide usage. We find evidence that crop insurance significantly negatively affects farmers' use of fertilisers and pesticides, as well as significantly positively affects their adoption of green agricultural technologies (GAT) that can replace or complement traditional fertilisers and pesticides. Moreover, our results reveal that compared with small‐scale farmers, crop insurance has a stronger effect on large‐scale farmers' use of agrochemicals. Finally, when the insured amount is higher or the relative deductible is lower, farmers are more likely to reduce fertiliser and pesticide usage and adopt GAT. Overall, this paper scientifically identifies crop insurance can improve farmers' agrochemical input behaviour, by reducing farmers' use of traditional agrochemical inputs and increasing their adoption of GAT, which is of great significance for ensuring the safety of the agricultural ecological environment.

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Section: Conceptual Frameworkmentioning

confidence: 99%

How crop insurance influences agrochemical input use: Evidence from cotton farmers in China

Mao

Chen

Rui-yao

et al. 2023

Aus J Agri & Res Econ

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Estimating temperature impacts on perennial crop losses in California: Insights from insurance data

Goh

2021

Applied Eco Perspectives Pol

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This study provides a novel empirical framework for estimating the effects of temperature on the production of several tree crops in California by using underused insurance data and a variable selection technique. We utilize a Bayesian variable selection technique to select relevant temperature variables. We then use the selected temperature variables to assess the temperature effects on crop losses. We find that a greater length to freeze exposure increases crop losses and relatively smaller roles of chill hours and heating hours. We also find the heterogeneity of the effects across insurance coverage levels.

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How do smallholder farmers run towards agricultural modernization under multiple stressors in China's coastal zones: an agent-based modeling approach

Wang,

Li,

Zou

et al. 2024

Environ Dev Sustain

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Premium rates and selection in specialty crop insurance markets: Evidence from the catastrophic coverage participation

Cited by 10 publications

References 32 publications

How crop insurance influences agrochemical input use: Evidence from cotton farmers in China

How crop insurance influences agrochemical input use: Evidence from cotton farmers in China

Estimating temperature impacts on perennial crop losses in California: Insights from insurance data

How do smallholder farmers run towards agricultural modernization under multiple stressors in China's coastal zones: an agent-based modeling approach

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