Farmers’ Preferences for Crop Insurance Attributes

Review of Agricultural Economics, Vol. 25, No. 2, pp. 415-429

15 Pages Posted: 30 Jul 2014

See all articles by Bruce J. Sherrick

Bruce J. Sherrick

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

Peter J. Barry

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

Gary Schnitkey

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

Paul N. Ellinger

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

Brian Wansink

Retired

Date Written: 2003

Abstract

Utilizing survey data from corn and soybean farmers in the Midwest, this study assess the relative importance of different features of crop insurance products. Conjoint analysis results indicate that farmers' preferences for flexibility dominate both type of insurance and coverage level. Revenue insurance demand is greater by those who are larger, younger, and farm in more separate locations. Results are significant and consistent by size, insurance usage, leverage, and risk perception. The results permit prediction of market shares of competing insurance products within specific producer segments, and thus also provide guidance for targeting specific producer groups with new product configurations.

Suggested Citation

Sherrick, Bruce and Barry, Peter J. and Schnitkey, Gary and Ellinger, Paul N. and Wansink, Brian, Farmers’ Preferences for Crop Insurance Attributes (2003). Review of Agricultural Economics, Vol. 25, No. 2, pp. 415-429, Available at SSRN: https://ssrn.com/abstract=2473684 or http://dx.doi.org/10.2139/ssrn.2473684

Bruce Sherrick

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics ( email )

1301 W. Gregory Drive
Center for Farm and Rural Business Finance
Urbana, IL 61801
United States
(217) 244-2637 (Phone)

Peter J. Barry

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics ( email )

1301 W. Gregory Drive
Center for Farm and Rural Business Finance
Urbana, IL 61801
United States
(217) 333-1827 (Phone)

Gary Schnitkey

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics ( email )

1301 W. Gregory Drive
Urbana, IL 61801
United States

Paul N. Ellinger

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics ( email )

1301 W. Gregory Drive
Center for Farm and Rural Business Finance
Urbana, IL 61801
United States
(217) 333-5503 (Phone)

Brian Wansink (Contact Author)

Retired ( email )

607-319-0123 (Phone)

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