Opportunity Costs, Share Leasing, And Prevented Planting Claims In Crop Insurance

This paper determines whether the opportunity costs of share leasing and the share amounts of farmers/tenants affect the likelihood of submitting a prevented planting claim. Results from our probit analysis shows that lower opportunity costs of share leasing and higher farmer/tenant share amount can...

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Published inIDEAS Working Paper Series from RePEc
Main Authors Rejesus, Roderick M, Escalante, Cesar L, Cross, Mike H
Format Paper
LanguageEnglish
Published St. Louis Federal Reserve Bank of St. Louis 01.01.2003
Subjects
Crop insurance
Leasing
Opportunity costs
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Abstract This paper determines whether the opportunity costs of share leasing and the share amounts of farmers/tenants affect the likelihood of submitting a prevented planting claim. Results from our probit analysis shows that lower opportunity costs of share leasing and higher farmer/tenant share amount can increase the probability of submitting a prevented planting. These results have potential implications for setting prevented planting buy-up rates and crop insurance compliance procedures.
AbstractList This paper determines whether the opportunity costs of share leasing and the share amounts of farmers/tenants affect the likelihood of submitting a prevented planting claim. Results from our probit analysis shows that lower opportunity costs of share leasing and higher farmer/tenant share amount can increase the probability of submitting a prevented planting. These results have potential implications for setting prevented planting buy-up rates and crop insurance compliance procedures.
Author Escalante, Cesar L
Cross, Mike H
Rejesus, Roderick M
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Leasing
Opportunity costs
Title Opportunity Costs, Share Leasing, And Prevented Planting Claims In Crop Insurance
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