effects of crop insurance and government payments on annual financial risk bruce a. babcock center...
TRANSCRIPT
![Page 1: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/1.jpg)
Effects of Crop Insurance and Government Payments on
Annual Financial Risk
Bruce A. BabcockCenter for Agricultural and Rural Development
www.card.iastate.edu
Presented March 8, 2005
![Page 2: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/2.jpg)
Talk Outline
• How are option premiums determined?• Effects of hedges, puts, and insurance on
risk• How do commodity programs affect risk?• How much risk is left over to reward
management?• Discussion
![Page 3: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/3.jpg)
Per-Bushel Cost of a Call Option on December Corn Futures (Futures price = 234.75)
0
5
10
15
20
25
220 230 240 250 260 270 280 290 300
cents/bu
cent
s/bu
![Page 4: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/4.jpg)
Distribution of December Futures Prices as of March 7, 2005
0.00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
0.10
cents/bu
prob
abili
ty
![Page 5: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/5.jpg)
$2.30 What is the probability of a particular price outcome?
What is the option payoff if that price occurs?
Multiply the probability by the payoff at that price.
What is the strike price?
5.2% chance that price is between $1.70 and $1.80
$0.55
.045 x .55 = $0.023
Repeat for all outcomes
Determining a Put Option Premium
0.00
0.02
0.04
0.06
0.08
0.10
0.12
cents/bu
prob
abili
ty
![Page 6: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/6.jpg)
Summing up all outcomes: $0.17 for a $2.30 put option
0.00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
0.10
220 -230
210 -220
200 -210
190 -200
180 -190
170 -180
160 -170
150 -160
140 -150
< 140
Price Range
Prob
abili
ty
0
0.2
0.4
0.6
0.8
1
1.2
Opt
ion
payo
ut (c
ents
/bu)
![Page 7: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/7.jpg)
Powesheik County Corn Yields: 1957 to 2004
0
20
40
60
80
100
120
140
160
180
200
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Year
bu/a
c
![Page 8: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/8.jpg)
Powesheik County Soybean Yields: 1957 to 2004
0
10
20
30
40
50
60
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Year
bu/a
c
![Page 9: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/9.jpg)
Distribution of Farm (not field) Yields for an Average Powesheik County Farmer
0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
bu/ac
prob
abili
ty
![Page 10: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/10.jpg)
Per-Acre Yield Option Premiums for Alternatve Strike Yield Amounts (Price = $2.30/bu)
0
5
10
15
20
25
30
100 110 120 130 140 150 160
bu/ac
$/ac
re
![Page 11: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/11.jpg)
Crop Insurance Premiums for Different Coverage Levels (Price = $2.30/bu)
0
5
10
15
20
25
30
60% 65% 70% 75% 80% 85% 90% 95% 100%
Coverage level
$/ac
re
![Page 12: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/12.jpg)
Unsubsidized Crop Insurance Premiums for Different Coverage Levels (Price = $2.30/bu)
0
5
10
15
20
25
60% 65% 70% 75% 80% 85% 90%
Coverage level
$/ac
re
"Best" Estimate atEnterprise Unit
Basic Units
![Page 13: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/13.jpg)
Crop Insurance Premiums for Different Coverage Levels (Price = $2.30/bu)
0
5
10
15
20
25
60% 65% 70% 75% 80% 85% 90%
Coverage level
$/ac
re "Best" Estimate at Enterprise UnitBasic UnitsEnterprise units
![Page 14: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/14.jpg)
Crop Insurance Premiums for Different Coverage Levels (Price = $2.30/bu)
0
2
4
6
8
10
12
14
16
60% 65% 70% 75% 80% 85% 90%
Coverage level
$/ac
re "Best" Estimate at Enterprise UnitProducer-Paid basic unitProducer paid enterprise unit
![Page 15: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/15.jpg)
Distribution of Corn Harvest Revenue Less $180 Variable Cost
0.00
0.02
0.04
0.06
0.08
0.10
0.12
$/acre
prob
abili
ty
![Page 16: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/16.jpg)
Distribution of Net Revenue Hedging 75% of Expected Production
0.00
0.02
0.04
0.06
0.08
0.10
0.12
$/acre
prob
abili
ty
![Page 17: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/17.jpg)
Distribution of Net Revenue Hedging 75% of Expected Production
0.00
0.02
0.04
0.06
0.08
0.10
0.12
$/acre
prob
abili
ty
![Page 18: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/18.jpg)
Distribution Hedging 75% of Expected Production with Put options
0.00
0.02
0.04
0.06
0.08
0.10
0.12
$/acre
prob
abili
ty
![Page 19: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/19.jpg)
Corn Acres Insured in Powesheik County in 2004
0
5,000
10,000
15,000
20,000
25,000
30,000
50 55 60 65 70 75 80 85
Coverage Level
Acr
es
Actual Production HistoryCrop Revenue CoverageGroup Risk Income ProtectionGroup Risk PlanRevenue Assurance
![Page 20: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/20.jpg)
Soybean Acres Insured in Powesheik County in 2004
0
5,000
10,000
15,000
20,000
25,000
50 60 65 70 75 80 85 90
Coverage Level
Acr
es
Actual Production HistoryCrop Revenue CoverageGroup Risk Income ProtectionGroup Risk PlanRevenue Assurance
![Page 21: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/21.jpg)
Distribution of Net Revenue with 75% Yield Insurance (APH)
0.00
0.02
0.04
0.06
0.08
0.10
0.12
$/acre
prob
abili
ty
![Page 22: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/22.jpg)
Distribution with Yield Insurance and 75% Hedge
0.00
0.02
0.04
0.06
0.08
0.10
0.12
$/acre
prob
abili
ty
![Page 23: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/23.jpg)
Distribution Using Yield Insurance and Put Options
0.00
0.02
0.04
0.06
0.08
0.10
0.12
$/acre
prob
abili
ty
![Page 24: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/24.jpg)
Distribution of Net Revenue with 75% RA
0.00
0.02
0.04
0.06
0.08
0.10
0.12
$/acre
prob
abili
ty
![Page 25: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/25.jpg)
Distribution with 75% RA-HPO
0.00
0.02
0.04
0.06
0.08
0.10
0.12
$/acre
prob
abili
ty
![Page 26: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/26.jpg)
Distribution with 75% RA and Hedge
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
$/acre
prob
abili
ty
![Page 27: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/27.jpg)
Distribution with 75% RA-HPO and Hedge
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
$/acre
prob
abili
ty
![Page 28: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/28.jpg)
Structure of Program Paymentsfor Corn
Target PriceFixed Payment
Loan Rate
Counter-CyclicalPayment
Loan DeficiencyPayment
NotTiedTo
Prod
ProdReq.
$2.63
$0.28
$2.35
$1.95
RegardlessOf Market
Only If…
![Page 29: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/29.jpg)
Distribution of Net Revenue Plus Direct Payments
0.00
0.02
0.04
0.06
0.08
0.10
0.12
$/acre
prob
abili
ty
![Page 30: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/30.jpg)
Distribution of Net Revenue Plus LDPs
0.00
0.02
0.04
0.06
0.08
0.10
0.12
$/acre
prob
abili
ty
![Page 31: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/31.jpg)
Distribution of Net Revenue Plus CCPs
0.00
0.02
0.04
0.06
0.08
0.10
0.12
$/acre
prob
abili
ty
![Page 32: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/32.jpg)
Distribution with DP, LDP, CCP
0.00
0.02
0.04
0.06
0.08
0.10
0.12
$/acre
prob
abili
ty
![Page 33: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/33.jpg)
Risk Free Farming?
0.00
0.02
0.04
0.06
0.08
0.10
0.12
$/acre
prob
abili
ty
![Page 34: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/34.jpg)
Reduced Risk
• With no insurance or government programs:– Average return over variable cost = $117/ac– 5.2% probability of not covering $180 variable cost
• With all government programs and insurance:– Average returns over variable cost = $207/ac– 5.9% probability that returns are less than $117/ac
![Page 35: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/35.jpg)
Costs of Benefits of Crop Insurance Decisions
• What product to buy?– APH, RA, RA-HPO, CRC, GRP, GRIP, GRIP-HRO
• What coverage level to buy?– CAT, 65%, 70%, 75%, 80%, 85%
• What unit structure to use? – (optional, basic, enterprise, whole-farm)
![Page 36: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/36.jpg)
Effects of Coverage and Unit Structure on Premium
Coverage Level 65% 75% 85%
Total Premium Optional 6,749 16,594 32,478 Enterprise 4,545 12,425 24,610 Whole-Farm 2,440 10,270 21,870 Producer Premium Optional 2,767 7,452 20,136 Enterprise 1,863 5,591 15,258 Whole-Farm 1,000 4,621 13,559
![Page 37: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/37.jpg)
Change in Expected Indemnity 65% to 75% 75% to 85% Optional 9,845 15,884 Enterprise 7,880 12,185 Whole-Farm 7,830 11,600
Change in Producer Premium Optional 4,685 12,684 Enterprise 3,728 9,667 Whole-Farm 3,621 8,938
![Page 38: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/38.jpg)
Expected rate of return from increasing coverage
65% to 75% 75% to 85% Optional 110% 25% Enterprise 111% 26% Whole-Farm 116% 30%
![Page 39: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/39.jpg)
Expected rate of return to changing unit structure
Whole-Farm to Enterprise Enterprise to Optional
65% 144% 144%
75% 122% 124%
85% 61% 61%
![Page 40: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/40.jpg)
Distribution of Returns by Unit Structure
![Page 41: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/41.jpg)
GRIP and GRIP-HRO
• GRIP guarantee = Factor*CBOT Springtime Price*Expected
County Yield• GRIP-HRO guarantee =
Factor*CBOT Fall or Spring Price*Expected County Yield
Factor lies between 0.6 and 1.5.
![Page 42: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/42.jpg)
Who Should Buy GRIP?
• Farmers who do not have a representative APH yield
• Farmers who are lower risk than that assumed in APH program
• Farmers with yields that are highly correlated with county yields
![Page 43: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/43.jpg)
GRIP and GRIP-HRO in Poweshiek County
(Expected Yield = 154.9 bu/ac)
Maximum Coverage Total Producer Per Acre Premium Premium ($/acre) ($/acre) ($/acre)
GRIP $553 $32.30 $14.53 HRO $553 $47.28 $21.28
![Page 44: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/44.jpg)
Historical Indemnities that Would Have Been Paid Out Under GRIP and GRIP-HRO in Powesheik County
0
50
100
150
200
250
$/ac
re GRIPHRO
![Page 45: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/45.jpg)
Payoff from GRIP and GRIP-HRO
• Total payout = 6.2% of liability for GRIP and 7.6% of liability for HRO from 1975 to 2004.
• Premium rate = 5.84% of liability from GRIP and 8.55% of liability from GRIP-HRO.
• Since 1975, rate of return = 6% for GRIP and -12%% for HRO.
![Page 46: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/46.jpg)
Subsidized rate of return for GRIP and GRIP-HRO
• 2005 Premium = $14/acre for GRIP and $21 for GRIP-HRO
• Expected Payout from 1975 to 2004: $34 for GRIP and $42 for HRO
• Expected Payout from 1957 to 2004: $27 and $39.
• Expected return = $20 or $13 per acre for GRIP, $21 or $18 per acre for HRO.
![Page 47: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/47.jpg)
Distribution with 90% GRIP
0.00
0.02
0.04
0.06
0.08
0.10
0.12
$/acre
prob
abili
ty
![Page 48: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/48.jpg)
Distribution with 90% GRIP-HRO
0.00
0.02
0.04
0.06
0.08
0.10
0.12
$/acre
prob
abili
ty
![Page 49: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/49.jpg)
How Does GRIP-HRO Perform Relative to the Gold Standard?
0.00
0.02
0.04
0.06
0.08
0.10
0.12
$/acre
prob
abili
ty
RA + DP, LDP, CCPGRIP + DP, LDP, CCP
![Page 50: Effects of Crop Insurance and Government Payments on Annual Financial Risk Bruce A. Babcock Center for Agricultural and Rural Development](https://reader033.vdocument.in/reader033/viewer/2022052916/5a4d1b777f8b9ab0599b7ba5/html5/thumbnails/50.jpg)
www.card.iastate.edu
• Discussion