Revenue insurance purchase decisions of farmers

Ashok Mishra, Barry K. Goodwin

Research output: Contribution to journalArticle

16 Citations (Scopus)

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 languageEnglish (US)
Pages (from-to)149-159
Number of pages11
JournalApplied Economics
Volume38
Issue number2
DOIs
StatePublished - Feb 10 2006
Externally publishedYes

Fingerprint

Purchase decision
Insurance
Revenue
Farmers
Farm
Operator
Cash
Purchase
Substitute
Assets
Farm households
Off-farm income
Wealth
Marketing
Participation
Logit model
Debt

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Revenue insurance purchase decisions of farmers. / Mishra, Ashok; Goodwin, Barry K.

In: Applied Economics, Vol. 38, No. 2, 10.02.2006, p. 149-159.

Research output: Contribution to journalArticle

Mishra, Ashok ; Goodwin, Barry K. / Revenue insurance purchase decisions of farmers. In: Applied Economics. 2006 ; Vol. 38, No. 2. pp. 149-159.
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