Date of Award:

5-2023

Document Type:

Thesis

Degree Name:

Master of Science (MS)

Department:

Applied Economics

Committee Chair(s)

Ryan Feuz

Committee

Ryan Feuz

Committee

Brandon Willis

Committee

Ryan Boswoth

Abstract

We evaluate the historically optimal producer-selected coverage options comprised of coverage length and level for each marketing month for various types of livestock insured with Livestock Risk Protection insurance. We begin with feeder cattle steers (600-900lbs) and then analyze the other types of feeder cattle, followed by fed cattle and swine. The optimal contracts are identified as those that have historically provided the highest probability of a positive net return and the highest average net return. We find that regardless of marketing month, the optimal contracts consist of relatively high coverage levels whereas the optimal length of the contracts varies across marketing months and by livestock type. The results are compared against actual policies purchased to evaluate whether producer decision patterns are in line with the current findings.

Checksum

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Included in

Economics Commons

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