Theses and Dissertations
Issuing Body
Mississippi State University
Advisor
Coble, Keith H.
Committee Member
Park, Eunchun
Committee Member
Harri, Ardian
Committee Member
Hopper, George M.
Date of Degree
8-9-2019
Original embargo terms
Worldwide
Document Type
Graduate Thesis - Open Access
Major
Agricultural Economics
Degree Name
Master of Science
College
College of Agriculture and Life Sciences
Department
Department of Agricultural Economics
Abstract
I analyzed the effects of Agriculture Risk Coverage (ARC) and Revenue Protection crop insurance (RP) on the RP coverage level by certainty equivalents and certainty equivalent returns. ARC is a commodity program that falls under Title I of the 2014 farm bill and triggers a payment for a participating producer once his actual revenue falls below a band of 76-86 percent of a calculated expected revenue. RP is a revenue-based crop insurance program that allows for a producer to sign up for one of eight different coverage levels ranging from 50-85 percent in 5 percent increments. This leads to the idea that in order to maximize his utility, a fully-informed, expected-utility maximizing producer should not choose to select full coverage RP but rather select the 75 percent RP and pair it with the ARC program. This analysis is conducted under the conceptual frameworks of expected-utility and cumulative prospect theory.
URI
https://hdl.handle.net/11668/14518
Recommended Citation
Biram, Hunter, "Mitigating price and yield risk using revenue protection and agriculture risk coverage" (2019). Theses and Dissertations. 3121.
https://scholarsjunction.msstate.edu/td/3121
Comments
Crop Insurance||Expected Utility Theory||Prospect Theory||Agricultural Policy