| The customizable area whole farm insurance (CAWFI) is proposed and evaluated as a possible whole-farm revenue protection design for crop farms. The evaluation included assessing appropriate weight, optimal scale, and optimal coverage level. The optimal CAWFI was tested against no insurance program, 90% farm level whole farm insurance (90% CFWFI), and CAWFI with scale and coverage level as provisioned in GRP product (restricted CAWFI) in representative farm in Kansas, North Dakota, Illinois, and Mississippi.;The study finds the optimal CAWFI outperforms no insurance program and restricted CAWFI asserting that CAWFI is a workable insurance model and relaxing restriction on scale and coverage level can increase expected utility of farmers. The optimal CAWFI results in a risk reduction roughly equal with 90% farm-level whole-farm insurance though the expected indemnities in it are at least three fold. |
