Agriculture Commons^™

Impact Of Rma’S Projected Price On Prevent Planting Claims, Nicolas Enrique Alvarez Mena

LSU Master's Theses

This research studies the presence of ex-post moral hazard in the prevent planting provision from the crop insurance program in cotton, corn, and soybeans for the Plains Region and Southeast Regions of the U.S. Three fixed effect models are developed using the proportion of prevent plant acres as the dependent variable, as well as weather, input price, expected harvest price and a break-even point for the independent variables. In addition, a fourth fixed effect (FE) model is introduced using the logit transformation and the same variables as in previous models. The results show the number of PP claims has been …