Texas High Plains (THP) is a major cotton producing region in the US with low rainfall and decreasing irrigation water availability. Hence stochastic rainfall poses considerable production risk in the region and developing strategies to maximize the average profit and minimize the year to year...

The objective of this paper is to compare the accuracy of crop insurance rating methods based on historical liability and indemnity data (similar to the procedure currently used by the Risk Management Agency) and “yield distribution” approaches. Estimated rates are compared to “true”...

This paper develops and applies a methodology to assess the accuracy of historical loss-cost rating procedures, similar to those used by the U.S. Department of Agriculture’s Risk Management Agency (RMA), versus alternative parametric premium estimation methods. It finds that the accuracy...

New crop insurance coverage offered by the 2014 Farm Bill will be available to cotton farmers beginning in 2015. Stacked Income Protection Plan (STAX) and Supplemental Coverage Option (SCO) are new crop insurance options, which are designed to protect farmers from shallow losses. STAX is only...

Many investment decisions of agribusiness firms, such as when to invest in an emerging market or whether to expand the capacity of the firm, involve irreversible investment and uncertainty about demand, cost or competition. This paper uses an option-value model to examine the factors affecting...

Using trout producer survey data and the contingent valuation method, we estimate willing-ness to pay for a potential insurance policy. The survey was conducted in 2005 across the United States; 268 producers completed the survey instrument, resulting in a response rate of 81 percent. Design of...