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Abstract
Insurance rates for crop yield protection programs have traditionally been calcu lated
from county average yie lds. Where grower acreages and yields are not homogeneous,
this approach leads to higher premiums and payouts and greater incidence of adverse
selection . With individual grower data a production weighted rate premium calcu lation
method ca~ be used which avoids these problems . Furthermore, the definition of rate
classes is not constrained to county boundaries. The additional complication of technical
change is addressed and one solution is provided. Results are presented for the cranberry
industry.