Mississippi State University
Date of Degree
Graduate Thesis - Campus Access Only
Master of Science (M.S.)
College of Agriculture and Life Sciences
Department of Agricultural Economics
The federal crop insurance program provides crop insurance for millions of acres and many commodities every year. The Risk Management Agency of the USDA is responsible for determining the premium rates for these covered commodities. Currently, the quality of soil is not considered when determining baseline yields and expected premium rates. This study utilizes the moment-based maximum entropy method to assess the effect of incorporating soil in the rate making methodology. Several moments of upland cotton yield in Arkansas, Mississippi, and Texas are conditioned on weather, irrigation, and soil control variables. Ultimately, I find evidence of mispriced premium rates for counties in all three states for both irrigated and non-irrigated upland cotton yield.
Moore, Rylan, "Utilizing soil quality data for premium rate making in the federal crop insurance program" (2023). Theses and Dissertations. 5946.