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Author

Dong Won Lee

Document Type

Thesis - University Access Only

Award Date

2007

Degree Name

Master of Science (MS)

Department / School

Economics

First Advisor

Matthew Diersen

Abstract

A major purpose of this study is to analyze the effect of premium subsidy changes on the adoption of insurance product type and coverage amount by soybean and com producers in South Dakota. Expanded premium subsidies under the Agricultural Risk Protection Act of 2000 led to higher demand for revenue product at higher insurance coverage levels. An increased premium rate, caused by prospective reductions in the premium subsidy, would likely result in lower demand for insurance coverage. Farm yield variability, farm size, price election levels, county-level expected yield and premium rate are significant factors in determining product type and coverage amount choices. A three-stage least squares model is introduced to explain producers' simultaneous decisions to choose an insurance product type and a coverage amount.

Library of Congress Subject Headings

Crop insurance -- South Dakota
Subsidies
Insurance premiums

Format

application/pdf

Publisher

South Dakota State University

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