Preferences for Livestock Revenue Insurance Among Beef Producers

Personal interviews were conducted with 52 Louisiana cow-calf producers todetermine their preferences for a livestock revenue insurance (LRI) product.Conjoint analysis was utilized to determine the importance of selected attributesof insurance policies for these producers. Two-limit tobit models were estimated.Producers were segmented using cluster analysis based upon preferences for LRIproduct attributes. A multinomial logit model was used to determine differencesbetween characteristics of producers in each cluster. Producers generally preferredhigher-premium, zero-deductible products; 180-day policy length; the state priceseries; and an in-person method of marketing. Cluster analysis yielded three groupsof preferences