This paper analyzes the potential trade offs and complementarities that exist between intra-year strategies employing annual price and yield risk contracts and inter-year self-insurance strategies involving intertemporal consumption substitution and borrowing, and examines whether standard crop...

Empirical evidence for the existence of moral hazard in the U.S. crop insurance program has been inconclusive. Here, we seek empirical evidence of moral hazard in the U.S. crop insurance program, departing from the established empirical literature in two significant respects. First, we attempt...

This paper examines how insurance companies participating in delivery of crop insurance would change patterns of portfolio allocation across reinsurance funds in reaction to the 2005 Standard Reinsurance Agreement. The returns of insurance companies under the SRA are calculated using a...

The paper discusses a methodology for design and pricing of index insurance contracts for crop production. The methodology heavily relies on establishing a relationship between the index and yields in order to evaluate the contract performance in hedging farmers' risk. However, analysis of...

Very little attention has been given to the modeling of yield distribution for crops and regions in which yields exhibit irregular behavior. We undertake a statistical case study of Texas upland cotton and propose an alternative mixture distribution based on regime-switching model in which the...

The Global Food Price Crisis of 2007-2011 had mixed effects on the poor in developing nations. By some estimates, the Crisis lifted nearly 24 million poor farmers out of poverty; however, it also cast 68 million net food buyers into poverty. In this paper, we analyze the distributional impacts...

Lack of protection from downside risk has been posited as one explanation for sluggish technology uptake among subsistence agricultural households in the developing world. Access to credit and insurance is thought to be a stimulant to technology adoption where new methods are riskier but higher...

During the Global Food Price Crisis of 2007-2011, millions of people suffered from hunger because food had become expensive. To cope with this problem, the governments of several countries decided to establish public food reserves in order to stabilize domestic prices. In this paper we develop a...

This paper analyzes effects of hypothetical changes in the Standard Reinsurance Agreement (SRA) on rates of return of private insurance companies participating in delivery of crop insurance. A computer simulation program is used to model companies' returns under the current and alternative SRA...

The paper presents an economic analysis of the Standard Reinsurance Agreement (SRA), the contract that governs the relationship between the Federal Crop Insurance Corporation and the private insurance companies that deliver crop insurance products to farmers. The paper outlines provisions of the...