Campus Units
Economics
Document Type
Article
Publication Version
Published Version
Publication Date
2012
Journal or Book Title
Journal of Agricultural and Resource Economics
Volume
37
Issue
3
First Page or Article ID Number
415
Last Page
434
Abstract
A framework is developed to examine organic crop insurance established by the Risk Management Agency (RMA). Given that the RMA links organic and conventional crop prices, the model is calibrated to reflect both markets to illustrate the impacts that pricing has on insurance coverage. Findings indicate that at the 75% coverage level, the RMA's fixed-price factor implies an effective coverage ranging from 43% to 105% depending on the ratio of planting-time organic to conventional market prices. Results suggest the RMA's program is likely to induce adverse selection because the nominal coverage level is likely to deviate substantially from the effective coverage.
Copyright Owner
Western Agricultural Economics Association
Copyright Date
2012
Language
en
File Format
application/pdf
Recommended Citation
Singerman, Ariel; Hart, Chad; and Lence, Sergio H., "Revenue Protection for Organic Producers: Too Much or Too Little?" (2012). Economics Publications. 40.
https://lib.dr.iastate.edu/econ_las_pubs/40
Included in
Agricultural Economics Commons, Entrepreneurial and Small Business Operations Commons, Other Business Commons
Comments
This article is from Journal of Agricultural and Resource Economics 37 (2012): 415. Posted with permission.