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Crop Insurance as a Tool for Price and Yield Risk Management

  • Keith H. Coble
  • Thomas O. Knight
Chapter
Part of the Natural Resource Management and Policy book series (NRMP, volume 23)

Abstract

Agricultural production uncertainty due to events such as drought, frost, insect infestation, and disease is widely recognized. Concern about the effects of this uncertainty on the financial stability of farm firms has generated long-standing interest in providing risk management instruments to protect producers from such production risks. In the United States, crop insurance stands as the most prominent risk-sharing mechanism for agricultural yield risk, while price risk protection has traditionally been afforded through forward pricing instruments such as futures contracts and through price-oriented government programs such as marketing loan programs and deficiency payments. Recent introduction of crop revenue insurance has, however, blurred the separation between mechanisms for price and yield risk protection.

Keywords

Moral Hazard Agricultural Economic Adverse Selection Premium Rate Crop Insurance 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 2002

Authors and Affiliations

  • Keith H. Coble
    • 1
    • 2
  • Thomas O. Knight
    • 1
    • 2
  1. 1.Mississippi State UniversityUSA
  2. 2.Texas A&M UniversityUSA

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