Implications of Crop Insurance for Farmers and Lenders
Published online by Cambridge University Press: 05 September 2016
The effect of the farmer's choice of crop insurance was evaluated on both the farmer's and lender's performance. This was done using whole-farm, Monte Carlo simulation for Texas wheat/sorghum operations. Results indicate crop insurance would be preferred by moderately risk-averse farmers when farm firm failure became an issue or the insurance loss ratio approached one. A lender always preferred the use of crop insurance, especially when the probability of firm bankruptcy was an issue.
- Submitted Articles
- Journal of Agricultural and Applied Economics , Volume 19 , Issue 2 , December 1987 , pp. 113 - 120
- Copyright © Southern Agricultural Economics Association 1987