A Risk Analysis of Adjusted Gross Revenue-Lite on Beef Farms
No hay miniatura disponible
Fecha
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
This study evaluates the Adjusted Gross Revenue-Lite (AGR-Lite) whole-farm adjusted
gross revenue insurance program on net farm income risk using panel data from 49 southeast
Kansas beef farms. On average for the group, but not each individual farm, AGR-Lite reduces
the mean and standard deviation of net farm income, raises the average minimum, and lowers
the average maximum observations of the net income distribution. Thirty-four farms (69%)
received at least one indemnity payment. Stochastic efficiency with respect to a function
reveals that AGR-Lite is preferred by 18 of the farm managers (37%) when an upper bound
on the risk-aversion coefficient is used.