Trend yields and the crop insurance program

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Show simple item record Smith, Matthew K. 2012-04-30T15:30:03Z 2012-04-30T15:30:03Z 2012-04-30
dc.description.abstract Multiple Peril Crop Insurance (MPCI) is a federally subsidized crop insurance program designed to mitigate risk for farmers across the United States. Many changes in technology and weather have increased yields in recent years. This has caused some to argue for the crop insurance program to consider yield trends when setting yields for the producer. This thesis evaluates alternative Actual Production History (APH) methods for corn to determine differences in the methods and the resulting APH. The key issue to be evaluated is that a producer’s APH may not be reflective of their “yield goal.” The thesis examined how the APH can differ under alternative methods of calculating an APH. Some methods examined are currently used by the Risk Management Agency (RMA). Other methods are hypothetical alternatives. This study examines alternative methods on a national, county, and a farm level. This thesis demonstrates that adjusting APHs for yield trends provides a higher APH than an un-trended APH. The 7 Year Olympic Trended APH provides the highest APH in most cases for all the methods examined. The RMA Un-trended APH proved to provide the least yield on average for all methods examined. This demonstrates the importance of adjusting for yield trends to factor in agricultural technology advancements over time. en_US
dc.publisher Kansas State University en
dc.subject Crop insurance en_US
dc.subject Trend yields en_US
dc.subject Actual production history (APH) en_US
dc.subject Corn en_US
dc.subject Risk management agency en_US
dc.title Trend yields and the crop insurance program en_US
dc.type Thesis en_US Master of Agribusiness en_US
dc.description.level Masters en_US
dc.description.department Department of Agricultural Economics en_US
dc.description.advisor Allen M. Featherstone en_US
dc.subject.umi Agriculture, General (0473) en_US
dc.subject.umi Business (0310) en_US
dc.subject.umi Economics, Finance (0508) en_US 2012 en_US May en_US

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