Beef producer preferences and purchase decisions for livestock price insurance.

摘要

Personal interviews were conducted in 2002 with beef cattle producers (n=52) in Louisiana to determine their preferences and purchase decisions for livestock price insurance (LPI). Conjoint analysis was utilized to determine the importance of selected attributes of insurance policies for these producers. The characteristics of producers who prefer given attributes were also identified. Producers rated products given four economic situations to evaluate. A two-limit tobit model was used to estimate the part worth utility values for each attribute. Univariate probit models were estimated to evaluate the influence of producer characteristics on purchase decisions. Results indicate substantial interest in LPI among the surveyed producers. The most preferred product had a higher premium and no deductible. Producers also preferred the 180-day policy length. Results also indicate that willingness to purchase LPI products depends greatly upon risk preference and risk environment.