An Analysis of Farm-Level Performance of Shallow Loss Products based on Aggregated Farm Yields Case Study of the Stacked Income Protection Plan (STAX)

Author

Lauriane Senade Massan Yehouenou

Issuing Body

Mississippi State University

Advisor

Barnett, Barry J.

Committee Member

Harri, Ardian

Committee Member

Coble, Keith H.

Date of Degree

8-12-2016

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

The STAX and SCO shallow loss crop insurance products were introduced in the 2014 farm bill. This research investigates the farm-level performance of STAX for cotton growers. Using 10 years of actual farm yield data for the period 1999 to 2008, certainty equivalent gains were evaluated under four treatments in Texas, Mississippi and Louisiana for non-irrigated and irrigated cotton production. Following the current practice for STAX, county yield is estimated using yield data from YP, RP, and RP-HPE policies rather than NASS county level yield data. Findings show that, assuming actuariallyair premiums, certainty equivalent gains for RP tend to be higher than for STAX. But with subsidized premiums, the opposite outcome sometimes occurs. Furthermore, with subsidized premiums the findings indicate that almost all farms would benefit from purchasing STAX as a complement to RP. The use of actual farm yield data highlights the heterogeneity of STAX farm-level impacts.

URI

https://hdl.handle.net/11668/20966

Recommended Citation

Yehouenou, Lauriane Senade Massan, "An Analysis of Farm-Level Performance of Shallow Loss Products based on Aggregated Farm Yields Case Study of the Stacked Income Protection Plan (STAX)" (2016). Theses and Dissertations. 457.
https://scholarsjunction.msstate.edu/td/457