Abstract
The objective of this study is to evaluate farm, household, and financial characteristics of cash grain farmers' decisions of whether to purchase revenue insurance. Using farm-level data these characteristics were identified by estimating a logit model of revenue insurance purchase decisions by farm operators. Results indicate that farm operators with the ability to self-insure through accumulation of sufficient wealth reserves measured in terms of the ratio of debts-to-assets, operators with off-farm income, and participation in production and marketing contracts, are more likely to pursue these strategies as a substitute for federal revenue insurance programmes. Further, study finds that older and wealthy cash grain farmers are less likely to buy revenue insurance.
Original language | English (US) |
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Pages (from-to) | 149-159 |
Number of pages | 11 |
Journal | Applied Economics |
Volume | 38 |
Issue number | 2 |
DOIs | |
State | Published - Feb 10 2006 |
Externally published | Yes |
ASJC Scopus subject areas
- Economics and Econometrics