Evaluating Crop and Revenue Insurance Products as Risk Management Tools for Texas Cotton Producers

This paper develops and illustrates the application of a procedure to evaluate and compare the cost effectiveness of alternative crop insurance products for cotton in terms of their effect on expected producer net returns and the variation of net returns. Farm unit-level cotton yields and state-level price distributions are estimated by a multivariate nonnormal parametric modeling procedure and used to simulate the net returns to alternative crop insurance products over a 10-year planning horizon. The ranking of alternative insurance products using third-degree stochastic dominance is presented for Texas cotton producers.


Issue Date:
2003-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/37314
Published in:
Journal of Agricultural and Applied Economics, Volume 35, Number 1
Page range:
39-52
Total Pages:
14
JEL Codes:
C5; Q1




 Record created 2017-04-01, last modified 2017-08-25

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