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Crop Insurance's Role in Risk Management on Hog-Crop Farms

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  • George F. Patrick
  • Ananth S. Rao
Abstract
Multiple peril crop insurance's (MPCI) impact on Central Indiana hog-crop farms was analyzed under scenarios of alternative debt/asset ratios, government deficiency payment programs, and levels of off-farm income and yield variability. MPCI reduced the probability of survival of high-debt farms when yield variability was equal to county average yields. More positive effects result from use of MPCI under assumptions of greater available financial resources or higher levels of yield variability. MPCI is likely to have a more important role in risk management for the medium-debt farm or the high-debt farm with off-farm income than for the other scenarios analyzed.

Suggested Citation

  • George F. Patrick & Ananth S. Rao, 1989. "Crop Insurance's Role in Risk Management on Hog-Crop Farms," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 11(1), pages 1-10.
    • Handle: RePEc:oup:revage:v:11:y:1989:i:1:p:1-10.
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    File URL: http://hdl.handle.net/10.1093/aepp/11.1.1
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    Cited by:

    1. Wackernagel, Rick, 1998. "Potential Economic Impacts Of The Northeast Interstate Dairy Compact On Vermont Dairy Farms," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 27(1), pages 1-10, April.
    2. Massey, Raymond E. & Williams, Joseph E., 1991. "Swine Breeding Systems: A Stochastic Evaluation With Implications For Emerging Technology," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(1), pages 1-9, July.

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