A Risk Analysis of Adjusted Gross Revenue-Lite on Beef Farms. (May 2014)

• Record Type: Journal Article
• Authors: Williams, Jeffery R.; Saffert, Andrew T.; Barnaby, G. Art; Llewelyn, Richard V.; Langemeier, Michael R.
• Is Part Of: Journal of agricultural and applied economics. Volume 46:Number 2(2014)
• Page Start: 227
• Page End: 244
• Publication Date: 2014-05
• Subjects: AGR-Lite, -- beef farms, -- risk analysis, -- whole-farm revenue insurance; Q12, -- Q18; Agriculture -- economics; Agriculture -- Economic aspects -- Periodicals; Agriculture -- Economic aspects -- Southern States -- Periodicals; Agriculture -- Economic aspects -- United States -- Periodicals; Agriculture -- Aspect économique -- Périodiques; Agriculture -- Aspect économique -- États-Unis -- Périodiques; Agrarökonomik; Agrarmarkt; USA; Welt; Agriculture -- Economic aspects; United States; Periodicals; 338.10975
• DOI: 10.1017/S1074070800000754
• Languages: English
• ISSNs: 1074-0708

Abstract

Abstract : This study evaluates the Adjusted Gross Revenue-Lite (AGR-Lite) whole-farm adjusted gross revenue insurance program on net farm income risk using panel data from 49 southeast Kansas beef farms. On average for the group, but not each individual farm, AGR-Lite reduces the mean and standard deviation of net farm income, raises the average minimum, and lowers the average maximum observations of the net income distribution. Thirty-four farms (69%) received at least one indemnity payment. Stochastic efficiency with respect to a function reveals that AGR-Lite is preferred by 18 of the farm managers (37%) when an upper bound on the risk-aversion coefficient is used.