Author

Hunter Biram

Advisor

Coble, Keith H.

Committee Member

Park, Eunchun

Committee Member

Harri, Ardian

Committee Member

Hopper, George M.

Date of Degree

8-1-2019

Original embargo terms

||7/16/2020||

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

Comments

Crop Insurance||Expected Utility Theory||Prospect Theory||Agricultural Policy

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