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Full-Text Articles in Insurance

Flood Damaged Crops, Crop Insurance Payments And Lease Contracts, William M. Edwards Jul 2016

Flood Damaged Crops, Crop Insurance Payments And Lease Contracts, William M. Edwards

William Edwards

Some Iowa corn and soybean producers are facing substantial if not complete crop losses due to flooding. In particular, many acres of crops in the Missouri River Valley have been under water for a month or more this year. Fortunately, nearly 90 percent of Iowa’s corn and soybean acres are protected by multiple peril crop insurance.


Insurance Coverage For Drought-Damaged Crops, William M. Edwards Jul 2016

Insurance Coverage For Drought-Damaged Crops, William M. Edwards

William Edwards

Nearly 90 percent of the corn and soybean acres in Iowa are covered by multiple peril crop insurance. Drought damage is an insurable loss under these policies. Producers should consult with their crop insurance agents before harvesting or destroying any drought-damaged crops, however.


Important Crop Insurance Dates, William M. Edwards Jul 2016

Important Crop Insurance Dates, William M. Edwards

William Edwards

Even the best crop insurance plan is of little use if the right information is not collected and submitted on time. Likewise, if certain actions are not completed by the necessary date, producers may not receive full benefit from the risk protection that they have selected.


Insurance Coverage For Drought-Damaged Crops, William M. Edwards Jul 2016

Insurance Coverage For Drought-Damaged Crops, William M. Edwards

William Edwards

Nearly 90 percent of the corn and soybean acres in Iowa are covered by multiple peril crop insurance. Drought damage is an insurable loss under these policies. Producers should consult with their crop insurance agents before harvesting or destroying any drought-damaged crops, however.


Flood Damaged Crops, Crop Insurance Payments And Lease Contracts, William M. Edwards Jul 2016

Flood Damaged Crops, Crop Insurance Payments And Lease Contracts, William M. Edwards

William Edwards

Some Iowa corn and soybean producers are facing substantial if not complete crop losses due to flooding. In particular, many acres of crops in the Missouri River Valley have been under water for a month or more this year. Fortunately, nearly 90 percent of Iowa’s corn and soybean acres are protected by multiple peril crop insurance.


Important Crop Insurance Dates, William M. Edwards Jul 2016

Important Crop Insurance Dates, William M. Edwards

William Edwards

Even the best crop insurance plan is of little use if the right information is not collected and submitted on time. Likewise, if certain actions are not completed by the necessary date, producers may not receive full benefit from the risk protection that they have selected.


Early Planted Acres May Lose Replant Insurance, William M. Edwards Jul 2016

Early Planted Acres May Lose Replant Insurance, William M. Edwards

William Edwards

Unusually warm and dry weather has allowed crop producers to start spring field work earlier than can be remembered by most people. Getting an early start on tillage and planting reduces the risk of getting behind schedule later if an extended period of rainy weather occurs, but it also has its risks. The Risk Management Agency (USDA) has some specific rules about early planted crops with regard to crop insurance coverage. For each insurable crop RMA has set an “early planting date.” The earliest planting dates allowed for counties in the state of Iowa are April 11 for corn and ...


Insurance Coverage For Drought-Damaged Crops, William M. Edwards Jul 2016

Insurance Coverage For Drought-Damaged Crops, William M. Edwards

William Edwards

Nearly 90 percent of the corn and soybean acres in Iowa are covered by multiple peril crop insurance. Drought damage is an insurable loss under these policies. Producers should consult with their crop insurance agents before harvesting or destroying any drought-damaged crops, however.


Flood Damaged Crops, Crop Insurance Payments And Lease Contracts, William M. Edwards Jul 2016

Flood Damaged Crops, Crop Insurance Payments And Lease Contracts, William M. Edwards

William Edwards

Some Iowa corn and soybean producers are facing substantial if not complete crop losses due to flooding. In particular, many acres of crops in the Missouri River Valley have been under water for a month or more this year. Fortunately, nearly 90 percent of Iowa’s corn and soybean acres are protected by multiple peril crop insurance.


Important Crop Insurance Dates, William M. Edwards Jul 2016

Important Crop Insurance Dates, William M. Edwards

William Edwards

Even the best crop insurance plan is of little use if the right information is not collected and submitted on time. Likewise, if certain actions are not completed by the necessary date, producers may not receive full benefit from the risk protection that they have selected.


Flood Damaged Crops, Crop Insurance Payments And Lease Contracts, William M. Edwards Jul 2016

Flood Damaged Crops, Crop Insurance Payments And Lease Contracts, William M. Edwards

William Edwards

Some Iowa corn and soybean producers are facing substantial if not complete crop losses due to flooding. In particular, many acres of crops in the Missouri River Valley have been under water for a month or more this year. Fortunately, nearly 90 percent of Iowa’s corn and soybean acres are protected by multiple peril crop insurance.


Insurance Coverage For Drought-Damaged Crops, William M. Edwards Jul 2016

Insurance Coverage For Drought-Damaged Crops, William M. Edwards

William Edwards

Nearly 90 percent of the corn and soybean acres in Iowa are covered by multiple peril crop insurance. Drought damage is an insurable loss under these policies. Producers should consult with their crop insurance agents before harvesting or destroying any drought-damaged crops, however.


Insurance Coverage For Drought-Damaged Crops, William M. Edwards Jul 2016

Insurance Coverage For Drought-Damaged Crops, William M. Edwards

William Edwards

Nearly 90 percent of the corn and soybean acres in Iowa are covered by multiple peril crop insurance. Drought damage is an insurable loss under these policies. Producers should consult with their crop insurance agents before harvesting or destroying any drought-damaged crops, however.


Flood Damaged Crops, Crop Insurance Payments And Lease Contracts, William M. Edwards Jul 2016

Flood Damaged Crops, Crop Insurance Payments And Lease Contracts, William M. Edwards

William Edwards

Some Iowa corn and soybean producers are facing substantial if not complete crop losses due to flooding. In particular, many acres of crops in the Missouri River Valley have been under water for a month or more this year. Fortunately, nearly 90 percent of Iowa’s corn and soybean acres are protected by multiple peril crop insurance.


Early Planted Acres May Lose Replant Insurance, William M. Edwards Jul 2016

Early Planted Acres May Lose Replant Insurance, William M. Edwards

William Edwards

Unusually warm and dry weather has allowed crop producers to start spring field work earlier than can be remembered by most people. Getting an early start on tillage and planting reduces the risk of getting behind schedule later if an extended period of rainy weather occurs, but it also has its risks. The Risk Management Agency (USDA) has some specific rules about early planted crops with regard to crop insurance coverage. For each insurable crop RMA has set an “early planting date.” The earliest planting dates allowed for counties in the state of Iowa are April 11 for corn and ...


Boom Times For Crop Insurance, Bruce A. Babcock Jul 2015

Boom Times For Crop Insurance, Bruce A. Babcock

Iowa Ag Review

Crop farmers are enjoying record high profi ts because of dramatically higher market prices. Farmers’ increased demand for land, seed, fertilizer, and machinery has resulted in higher prices and profi ts for sellers of these inputs as well. One industry that is also enjoying the higher crop prices is the crop insurance industry. It benefits from higher prices because the formulas used to determine industry revenue automatically generate higher expected subsidies as crop prices rise. Actual subsidies depend in part on crop losses, but administrative and operating subsidies are directly tied to crop prices. Figure 1 shows how total industry ...


Corn Belt Contributions To The Crop Insurance Industry, Bruce A. Babcock Jul 2015

Corn Belt Contributions To The Crop Insurance Industry, Bruce A. Babcock

Iowa Ag Review

The crop insurance industry enjoyed another banner year in 2007, collecting $6.5 billion in premiums yet paying out only $3.2 billion in losses. I estimate that the industry will collect a record $2.8 billion from taxpayers. In contrast, the net amount that farmers received from the program in 2007 was only $750 million. Interestingly, since the beginning of this decade, the $11.3 billion in net payments to farmers (indemnities received minus farmer-paid premiums) is about equal to the amount that taxpayers have paid the industry ($11.1 billion). Overall, taxpayers have spent more than $22 billion ...


Drought Tolerance And Risk In The U.S. Crop Insurance Program, Bruce A. Babcock, Tian Yu Jul 2015

Drought Tolerance And Risk In The U.S. Crop Insurance Program, Bruce A. Babcock, Tian Yu

Iowa Ag Review

Are farmers paying too much for crop insurance? It sure seems so, at least in the Corn Belt. With the exception of 2008 when a large drop in price triggered payments, Corn Belt farmers have generally paid more into the program than they have gotten out, despite Congress’s intention that farmers get at least two dollars for each dollar they pay into the program.


Examining The Health Of The U.S. Crop Insurance Industry, Bruce A. Babcock Jul 2015

Examining The Health Of The U.S. Crop Insurance Industry, Bruce A. Babcock

Iowa Ag Review

In late September the Risk Management Agency (RMA) of USDA released the results of commissioned studies that calculated the rate of return that U.S. crop insurance companies have received from selling multi-peril crop insurance (MPCI). Since 2000, the average annual rate of return on equity has been 19 percent. The study also estimated that a reasonable rate of return over the same time period for this line of business would be about 11 percent. One straightforward interpretation of this difference is that since 2000, the crop insurance industry has received a rate of return that is 72 percent higher ...


Index-Based Insurance And Risk Management Among Nomadic Mongolian Herders , Kelsey Larson Dec 2014

Index-Based Insurance And Risk Management Among Nomadic Mongolian Herders , Kelsey Larson

Independent Study Project (ISP) Collection

Mongolian herders must contend with the risk of dzuds, harsh winters that can kill large numbers of livestock. To do so, they use a mixture of formal financial tools and traditional risk mitigation techniques. This paper is a study of the interaction between the Mongolian Index-based Livestock Insurance Program and traditional informal risk mitigation techniques. The researcher interviews herders in Bulgan soum, Arhangai aimag and Galuut soum, Bayanhongor aimag to compare the IBLI program’s impact in a community that has had IBLI since 2006 and one that only received IBLI in 2012. This study finds that insurance purchase is ...


Is Government Involvement Really Necessary: Implications For Systemic Risk And Crop Reinsurance Contracts, Xiaoguang Feng, Dermot J. Hayes Oct 2014

Is Government Involvement Really Necessary: Implications For Systemic Risk And Crop Reinsurance Contracts, Xiaoguang Feng, Dermot J. Hayes

Economics Presentations, Posters and Proceedings

Agriculture is subject to substantial systemic risk of crop yield losses due to widespread natural disasters. The systemic risk has been a major obstacle for the development of private crop insurance markets. Driven by spatially correlated weather events, crop losses are highly correlated within a certain area. As a result, the portfolio insurance risk associated with the crop losses has been raised far above what it would be if individual losses were independent, as proposed by Miranda and Glauber (1997). For example, Miranda and Glauber (1997) find that the portfolio risk faced by U.S. crop insurers is about ten ...


Diversifying Systemic Risk In Agriculture: A Copula-Based Approach, Xiaoguang Feng, Dermot J. Hayes Jul 2014

Diversifying Systemic Risk In Agriculture: A Copula-Based Approach, Xiaoguang Feng, Dermot J. Hayes

Economics Presentations, Posters and Proceedings

One of the biggest obstacles for the development of private crop insurance markets is the systemic risk inherent in crop yields. Driven by spatially correlated weather events, crop losses are highly correlated within a certain area. As a result, the portfolio insurance risk has been raised prohibitively high for viable private crop insurance markets unless subsidized by the government. For example, the portfolio risk faced by U.S. crop insurers is about ten times larger than that of conventional insurance lines (Miranda and Glauber, 1997).


Crop Insurance In Iowa, Alejandro Plastina, Chad Hart Jan 2014

Crop Insurance In Iowa, Alejandro Plastina, Chad Hart

Agricultural Policy Review

Farmers across the nation rely heavily on crop insurance as a risk management tool—in Iowa alone over 93 percent of corn and soybean planted area was insured in 2014, but that participation rate hasn’t always been the case. Participation in crop insurance declined substantially in the early 1990s after the mandate that required producers to purchase crop insurance in 1989 and 1990 to collect drought assistance in 1988 dissipated.


Price Expectations And Risk Profiles Drive Commodity Program Choices, Alejandro Plastina, Chad Hart Jan 2014

Price Expectations And Risk Profiles Drive Commodity Program Choices, Alejandro Plastina, Chad Hart

Agricultural Policy Review

The optimal commodity program choice depends as much on the specific production system in each farm as on the producer’s expectations about future yields and prices. Furthermore, the risk profile of producers will weigh heavily in the decision. This article illustrates the role of price expectations and risk profiles in commodity program choice using the ISU Farm Bill Analyzer.


Aflatoxin: Crop Insurance, Charles R. Hurburgh Jr., Chad E. Hart Sep 2012

Aflatoxin: Crop Insurance, Charles R. Hurburgh Jr., Chad E. Hart

Integrated Crop Management News

Aflatoxin is covered under multi-peril crop insurance. The settlement is done as a deducted percentage of actual yield depending on the aflatoxin level. Producers will receive the grain after settlement.


Insurance Coverage For Drought-Damaged Crops, William M. Edwards Jul 2012

Insurance Coverage For Drought-Damaged Crops, William M. Edwards

Integrated Crop Management News

Nearly 90 percent of the corn and soybean acres in Iowa are covered by multiple peril crop insurance. Drought damage is an insurable loss under these policies. Producers should consult with their crop insurance agents before harvesting or destroying any drought-damaged crops, however.


Early Planted Acres May Lose Replant Insurance, William M. Edwards Apr 2012

Early Planted Acres May Lose Replant Insurance, William M. Edwards

Integrated Crop Management News

Unusually warm and dry weather has allowed crop producers to start spring field work earlier than can be remembered by most people. Getting an early start on tillage and planting reduces the risk of getting behind schedule later if an extended period of rainy weather occurs, but it also has its risks. The Risk Management Agency (USDA) has some specific rules about early planted crops with regard to crop insurance coverage. For each insurable crop RMA has set an “early planting date.” The earliest planting dates allowed for counties in the state of Iowa are April 11 for corn and ...


Important Crop Insurance Dates, William M. Edwards Feb 2012

Important Crop Insurance Dates, William M. Edwards

Integrated Crop Management News

Even the best crop insurance plan is of little use if the right information is not collected and submitted on time. Likewise, if certain actions are not completed by the necessary date, producers may not receive full benefit from the risk protection that they have selected.


Flood Damaged Crops, Crop Insurance Payments And Lease Contracts, William M. Edwards Aug 2011

Flood Damaged Crops, Crop Insurance Payments And Lease Contracts, William M. Edwards

Integrated Crop Management News

Some Iowa corn and soybean producers are facing substantial if not complete crop losses due to flooding. In particular, many acres of crops in the Missouri River Valley have been under water for a month or more this year. Fortunately, nearly 90 percent of Iowa’s corn and soybean acres are protected by multiple peril crop insurance.


Price Analysis, Risk Assessment, And Insurance For Organic Crops, Ariel Singerman, Chad E. Hart, Sergio H. Lence Aug 2011

Price Analysis, Risk Assessment, And Insurance For Organic Crops, Ariel Singerman, Chad E. Hart, Sergio H. Lence

CARD Policy Briefs

In recent years, the organic sector has grown steadily and significantly. However, little economic research has been performed on risk management in organic agriculture, likely because of the lack of available data. This lack of data may also be why the creation of the current crop insurance policy for organic farmers has been so ad hoc.

The Agricultural Risk Protection Act of 2000 recognized organic farming as a “good farming practice,” making federal crop insurance coverage available for organic crops, and taking into account the idiosyncrasies of the organic production system. In addition to the production risks covered for conventional ...