Participation in the U.S. Federal Crop Insurance Program.

摘要

The report analyzes the demand for Federal multiple peril crop insurance, using a discrete choice model of crop insurance participation for the individual farmer. Results show that many risk-management strategies, such as crop diversification and off-farm income, are substitutes for crop insurance. Older farmers and those with lower debt-asset ratios are less likely to purchase crop insurance. Lack of data on individual yields and policies prevents addressing the issue of adverse selection as a determinant of participation.