The Demand for Multiple Peril Crop Insurance: Evidence from Montana Wheat Farms

Smith, Vincent H.; Baquet, Alan E.

doi:10.2307/1243790

Cited by 125 publications

(88 citation statements)

References 2 publications

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“…This is in line with the notion that well-educated producers have the human capital to more fully comprehend and utilize the nuances of effectively utilizing risk management strategies (Goodwin and Schroeder, 1994;Smith and Baquet, 1996;Mishra and El-Osta, 2002;Ayinde, 2008;Margerita et al, 2009). …”

Section: Socio-economic Characteristics Of the Poultry Farmerssupporting

confidence: 62%

Assessment of Risks and Uncertainties in Poultry Farming in Kwara State, Nigeria

Ik¹,

Falola²,

Babatunde³

et al. 2015

Sci. Technol. Arts Res. J.

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Article InformationThis study was designed to assess the risks and uncertainties encountered by poultry farmers in Kwara State, Nigeria. Specifically, the study describes the socio-economic characteristics of the farmers, identify the risks and uncertainties encountered by the farmers, determines the level of severity of the risks and uncertainties, and identifies the coping strategies employed by the farmers. Primary data obtained from 99 registered poultry farmers selected through multistage sampling technique were used for the study. These were complemented with data from published and grey literature. Descriptive statistics and 3-point Likert scale were used to analyze the data. The study shows that poultry farming in the study area is practiced mainly by young, small-scale farmers, who are married, with high level of formal education but had little access to extension services. The major sources of risks encountered by the farmers were severe weather fluctuation, lack of veterinary services, disease outbreak, transportation problems, parasites and severe price fluctuation of birds. The study further revealed that the severe risks encountered by the farmers were disease outbreak, poor parent stock, accumulation of dung, severe weather fluctuation, lack of veterinary services and transportation problems. The study therefore calls for improved extension services, good transportation facilities, adequate veterinary services, market information by government and relevant stakeholders as well as formation of cooperative socities by the farmers.

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Section: Socio-economic Characteristics Of the Poultry Farmerssupporting

confidence: 62%

Assessment of Risks and Uncertainties in Poultry Farming in Kwara State, Nigeria

Ik¹,

Falola²,

Babatunde³

et al. 2015

Sci. Technol. Arts Res. J.

View full text Add to dashboard Cite

show abstract

“…Coble et al (1996) obtain a crop insurance participation elasticity of -0.65 for a group of Kansas wheat farms. Smith and Baquet (1996) derive an average price elasticity of liability per planted acre of -0.6 for a sample of Montana wheat farms. Goodwin and Kastens (1993) obtain a price elasticity of liability per planted acre equal to -0.5 for a group of Kansas wheat farms.…”

Section: Resultsmentioning

confidence: 99%

“…Calvin (1990), Calvin (1992), Smith and Baquet (1996), Smith and Goodwin (1996), Coble et al (1996) and Just, Calvin and Quiggin (1999) analyze pre-1994 crop insurance participation through econometric studies based on farm-level data (see Knight and Coble (1997) for a thorough review of the literature on the demand for Multi Peril Crop Insurance). Goodwin (2001) carries out an econometric analysis of the demand for crop insurance after 1994 using aggregate data.…”

Section: Econometric Methodsmentioning

confidence: 99%

Modeling changes in the U.S. demand for crop insurance during the 1990s

Serra¹,

Goodwin²,

Featherstone³

2003

Agricultural Finance Review

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The crop insurance purchase decision for a group of Kansas farmers is analyzed using farm‐level data from the 1990s, a period that experienced many changes in the federal crop insurance program. Results indicate a reduction in the elasticity of the demand for crop insurance with respect to premium rates by the end of the decade. The reduction in demand elasticity corresponded with a considerable increase in government subsidies by the end of the 1990s. This result may also reflect the attractiveness of new revenue insurance products which may have made producers less sensitive to premium changes.

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“…The maximum amount that farmers would be willing to pay for crop insurance is assumed to be equal to the cost of other risk management strategies currently providing the same protection. Within this framework, farmers who value the security provided by insurance more highly would be willing to pay higher premiums (Smith and Baquet, 1996). Consequently, this analysis is focused on the following, more or less conventional, explanatory variables: socio-economic and demographic characteristics, relative risk and capacity to bear the risk, risk perception, farm characteristics included farm size, crop-centered diversification, diversification via livestock and use of improved crop varieties.…”

Section: Theoretical and Analytical Techniquesmentioning

confidence: 99%

Food Crop Farmers’ Willingness to Participate in Market-Based Crop Insurance Scheme: Evidence from Ghana

T-M

Kuwornu²,

Amadu³

2013

RAE

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The study assesses food crop farmers' willingness to participate in market-based crop insurance scheme in the Kintampo North Municipal of Ghana, using primary data solicited from 120 farmers in April 2010. The study employed descriptive statistical techniques to analyze the social, economic, demographic characteristics of farmers as well as their current risk management practices. Further, farmers' willingness to participate in a hypothetical market-based insurance scheme was estimated using the contingent valuation method. The results reveal that the mean willingness to pay premium for a hypothetical loss of GH¢ 1,000 of farm income is GH¢24.43. The minimum and maximum willingness to pay premium, in the insurance scheme are GH¢5.00 and GH¢80.00 respectively. The empirical results of the Binary Logit Model reveal that farm size, family size and diversification via livestock are factors that influence farmers' willingness to participate in crop insurance. Recommendations drawn for consideration by Government of Ghana (Ministry of Food and Agriculture), policy makers, insurance companies, development organizations and non-governmental organizations in rural poverty reduction are that the design and implementation of any crop insurance scheme in the Kintampo North Municipality and areas with similar characteristics should consider critical factors such as family size, farm size and livestock activities in the design. Further, a weather index-based insurance product should be piloted especially for droughts and floods while considering the current risk-management strategies employed by farmers. It is imperative that the Government subsidizes this program in the initial stages to encourage participation in the form of providing weather station equipment that would enable insurance companies to effectively validate liability claims by farmers.

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The Demand for Multiple Peril Crop Insurance: Evidence from Montana Wheat Farms

Cited by 125 publications

References 2 publications

Assessment of Risks and Uncertainties in Poultry Farming in Kwara State, Nigeria

Assessment of Risks and Uncertainties in Poultry Farming in Kwara State, Nigeria

Modeling changes in the U.S. demand for crop insurance during the 1990s

Food Crop Farmers’ Willingness to Participate in Market-Based Crop Insurance Scheme: Evidence from Ghana

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