A Risk Analysis of Adjusted Gross Revenue-Lite on Beef Farms

This study evaluates the Adjusted Gross Revenue-Lite (AGR-Lite) whole-farm adjusted gross revenue insurance program on net farm income risk using panel data from 49 southeast Kansas beef farms. On average for the group, but not each individual farm, AGR-Lite reduces the mean and standard deviation of net farm income, raises the average minimum, and lowers the average maximum observations of the net income distribution. Thirty-four farms (69%) received at least one indemnity payment. Stochastic efficiency with respect to a function reveals that AGR-Lite is preferred by 18 of the farm managers (37%) when an upper bound on the risk-aversion coefficient is used.


Editor(s):
Bosch, Darrell J.
Marchant, Mary A.
McKenzie, Andrew M.
Paudel, Krishna P.
Issue Date:
May 01 2014
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/169057
Published in:
Journal of Agricultural and Applied Economics, Volume 46, Number 2
Page range:
227-244
Total Pages:
18
JEL Codes:
Q12; Q18




 Record created 2017-04-01, last modified 2017-04-28

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