News Update on Crop Insurance Research: May – 2019

News Update on Crop Insurance Research: May – 2019

News Update on Crop Insurance Research: May – 2019

Area-Yield Crop Insurance Reconsidered

One of the more brilliant proposals for reforming the federal crop insurance program requires each premium rates and indemnities to be primarily based not on the producer’s individual yield however rather on the combination yield of a encompassing space. Area-yield crop insurance will offer simpler yield-loss coverage than one by one tailored insurance, while not most of the adverse choice and financial loss issues that have traditionally undermined the computer performance of the federal crop insurance program. [1]

Systemic Risk, Reinsurance, and the Failure of Crop Insurance Markets

Without reasonable insurance, non-public crop insurance markets are doomed to fail as a result of general weather effects induce high correlation among farm-level yields, defeating nondepository financial institution efforts to pool risks across farms. exploitation associate empirical model of the U.S. crop insurance market, we discover that U.S. crop nondepository financial institution portfolios are twenty to fifty times riskier than they’d be otherwise if yields were stochastically freelance across farms. we have a tendency to additionally notice that space yield insurance contracts would modify crop insurers to hide most of their general crop loss risk, reducing their risk exposure to levels usually old by a lot of typical property liability insurers. [2]

Crop Insurance Reconsidered

During the late Nineteen Eighties and early Nineteen Nineties, there was a lot of dialogue over the way to fix what were perceived because the “failures” of the Federal crop insurance program. The Federal Crop Insurance Improvement Act of 1980 created crop insurance the first sort of disaster protection for agricultural producers, exchange a standing disaster help program with sponsored crop insurance. To encourage sales, non-public corporations were noncommissioned to deliver the merchandise and considerably share within the underwriting risks. virtually long, the crop insurance program was born-again from a pilot program giving restricted coverage to a restricted variety of crops nationwide, to a nationwide program covering most major field crops in most major growing regions.1

The perceived failures of crop insurance were several. At the time of passage of the 1980 Act, Congress visualised a participation rate approaching five hundredth of eligible acres by the…. [3]

Defining Optimal Soybean Sowing Dates across the US

Global crop demand is anticipated to extend by 60–110% by 2050. temperature change has already affected crop yields in some countries, and these effects are expected to continue. Identification of weather-related yield-limiting conditions and development of ways for agricultural adaptation to temperature change is crucial to mitigate food security considerations. Here we have a tendency to used machine learning on U.S. soybean yield information, collected from vascular plant trials conducted in twenty seven states from 2007 to 2016, to look at crop sensitivity to variable in-season weather. we have a tendency to known the month-specific negative result of drought via exaggerated water vapour pressure deficit. Excluding TX and Mississippi, wherever later sowing exaggerated yield, sowing twelve days prior to what was practiced throughout this decade across the U.S. would have resulted in 100 percent larger total yield and a accumulative financial gain of ca. US$9 billion. Our information show the substantial nation- and region-specific yield and financial effects of adjusting sowing temporal arrangement and highlight the importance of unceasingly quantifying and adapting to temperature change. The magnitude of impact calculable in our study recommend that policy manufacturers (e.g., federal crop insurance) and laggards (farmers that are slow to adopt) that fail to acknowledge and adapt to temperature change can impact the national food security and economy of the U.S.. [4]

Factors Affecting Awareness Level of Farmers about Crop Insurance: A Case Study of Haryana

Dependency of Indian agriculture remains continued on monsoon. The unpredictable and irregular distribution of monsoon rains will increase risk and uncertainty farmers. Spreading the danger is a crucial facet of deciding to farmers. For the development within the handling of unsafe outcomes across people, there’s a desire for contingent plans. So, to bear in mind and to grasp the importance of crop insurance and also the connected policies has become necessary for the farmers of Haryana. we’ve got tried to understand the stage of their awareness concerning crop insurance through this study. the most objective of the study is to trace out the attention level of farmers concerning crop insurance in Haryana and that square measure the most issue that have an effect on their awareness level. this study finds that there square measure such a big amount of socio-economic factors that have an effect on the data of farmers concerning crop insurance like age, education, sources of major financial gain, class of farming, financial gain level and knowledge of farming. Education plays major role in understanding policies and importance of insurance for the farmers. each the govt. and also the implementing agency within the space ought to initiate awareness campaign so as to extend the extent of farmers. Awareness campaign ought to be conducted by the govt. from time to time at the village level to reinforce the attention level of farmers. The study suggests that the data level of farmers concerning crop insurance and its schemes will be increased  by victimisation completely different platforms of spreading awareness through varied academic efforts. [5]

Reference

[1] Miranda, M.J., 1991. Area-yield crop insurance reconsidered. American Journal of Agricultural Economics, 73(2), pp.233-242. (Web Link)

[2] Miranda, M.J. and Glauber, J.W., 1997. Systemic risk, reinsurance, and the failure of crop insurance markets. American Journal of Agricultural Economics, 79(1), pp.206-215. (Web Link)

[3] Glauber, J.W., 2004. Crop insurance reconsidered. American Journal of Agricultural Economics, 86(5), pp.1179-1195. (Web Link)

[4] Defining Optimal Soybean Sowing Dates across the US

Spyridon Mourtzinis, James E. Specht & Shawn P. Conley

Scientific Reportsvolume 9, Article number: 2800 (2019) (Web Link)

[5] Duhan, A. and Singh, S. (2017) “Factors Affecting Awareness Level of Farmers about Crop Insurance: A Case Study of Haryana”, Asian Journal of Agricultural Extension, Economics & Sociology, 21(4), pp. 1-7. doi: 10.9734/AJAEES/2017/37966. (Web Link)

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