Factors influencing farmers crop insurance decisions

Research output: Contribution to journalArticlepeer-review


Farmers' decisions to purchase crop insurance and their choices among alternative products are analyzed using a two-stage estimation procedure. The influences of risk perceptions, competing risk management options, as well structural and demographic differences are evaluated. The likelihood for crop insurance usage is found to be higher for larger, older, less tenured, more highly leveraged farms, and by those with higher perceived yield risks. The marginal effects of size, age, perceived yield risk, perceived importance of risk management activities, and other structural and demographic variables are identified in terms of their influences on choices among alternative crop insurance products.

Original languageEnglish (US)
Pages (from-to)103-114
Number of pages12
JournalAmerican Journal of Agricultural Economics
Issue number1
StatePublished - Feb 2004


  • Crop insurance
  • FCIC
  • Multinomial logit
  • Risk perceptions

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics


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