Whole Farm Income Insurance

26 Pages Posted: 24 May 2012

See all articles by Calum G. Turvey

Calum G. Turvey

Cornell University - School of Applied Economics and Management

Date Written: June 2012

Abstract

This article employs a mathematical programming model to investigate farmers’ optimal crop choices under gross revenue insurance, whole farm income insurance (WFI), the Canadian Agricultural Income Stabilization (CAIS) program, and its modified 2008 program AgrInvest. WFI poses a particularly interesting problem since the indemnity/premium structure is dependent upon the choice of crops, whereas the choice of crops is simultaneously influenced by the presence of the whole farm insurance program. Results indicate that farmers will alter farm plans significantly in response to the type of insurance offered and the level of subsidy.

Suggested Citation

Turvey, Calum G., Whole Farm Income Insurance (June 2012). Journal of Risk and Insurance, Vol. 79, Issue 2, pp. 515-540, 2012, Available at SSRN: https://ssrn.com/abstract=2065684 or http://dx.doi.org/10.1111/j.1539-6975.2011.01426.x

Calum G. Turvey (Contact Author)

Cornell University - School of Applied Economics and Management ( email )

248 Warren Hall
Ithaca, NY 14853
United States

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