Designing a whole-farm revenue insurance for agricultural crops in Zanjan province of Iran

• Mohammad Ghahremanzadeh ^[1] ; Rassul Mohammadrezaei ^[1] ; Ghader Dashti ^[1] ; Moharram Ainollahi ^[1]
  1. [1] University of Tabriz

     University of Tabriz

     Irán

     
• Localización: Economía agraria y recursos naturales, ISSN-e 2174-7350, ISSN 1578-0732, Vol. 17, Nº. 2, 2017, págs. 29-53
• Idioma: inglés
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• Resumen

  • The purpose of this article is to design and empirically evaluate the Whole Farm Insurance (WFI) over the conventional insurance programs in Zanjan province of Iran. Historical farm-level and county-level data were used to estimate yield and price density functions. Both parametric and non-parametric methods were applied for predicting the future values and the PQH simulation method was utilized to calculate premium rates. Results revealed that loss ratios of the WFI are lower for farmers who insured more than one crop. Additionally, utilizing WFI reduces premiums. Moreover, premiums obtained from nonparametric method are relatively lower compared to the parametric approach.

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