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The Potential for Revenue Insurance Policies in the South

Published online by Cambridge University Press:  28 April 2015

Jerry R. Skees ,
Joy Harwood ,
Agapi Somwaru  and
Janet Perry
Jerry R. Skees
Affiliation:
University of Kentucky
Joy Harwood
Affiliation:
Market and Trade Economics Division of the Economic Research Service (ERS), USDA
Agapi Somwaru
Affiliation:
ERS, USDA
Janet Perry
Affiliation:
ERS, USDA
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Abstract

The 1996 Farm Act and the 1994 Crop Insurance Reform Act are recent examples of policy changes that have increased risks for U.S. farmers. New products are emerging to help farmers manage risks. This article examines some of the policy changes, farmer responses, and new risk-sharing products. The focus turns to the new revenue insurance products and their potential in the South. While there are reasons to believe revenue insurance should be attractive in the South, any revenue products that use existing crop insurance rates will face difficulties since poor actuarial performance in the South has resulted in relatively high rates.

Keywords

agricultural policycrop insurancerevenue insurancerisksouthern agriculture
Type
Invited Paper Sessions
Information
Journal of Agricultural and Applied Economics , Volume 30 , Issue 1 , July 1998 , pp. 47 - 61
Copyright
Copyright © Southern Agricultural Economics Association 1998

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