Can insurance provide the US dairy farm safety net?

Wolf, Christopher A; Widmar, Nicole J

doi:10.1186/s40100-015-0031-8

Agricultural and Food Economics

Table 2 Probit estimates of margin insurance purchase and WTP/$ Margin

From: Can insurance provide the US dairy farm safety net?

	All respondents		Respondents who had used risk management		Respondents who had not used risk management
Variable	Coeff.	Marginal	Coeff.	Marginal	Coeff.	Marginal
Variable	(St. Err.)	Effect	(St. Err.)	Effect	(St. Err.)	Effect
Constant	−3.4864*		−3.8595*		−3.017*
Constant	(0.8188)		(1.3129)		(1.2385)
Premium	−0.8717*	−0.2216*	−0.8022*	−0.2351*	−1.1595*	−0.2284*
Premium	(0.1883)		(0.2822)		(0.2871)
Margin	0.0277	0.0070	0.1058*	0.0310*	−0.0338	−0.0067
Margin	(0.0187)		(0.0314)		(0.0265)
Cows	0.00004	0.00001	0.0001	0.00003	−0.0002	−0.00005
Cows	(0.00009)		(0.0001)		(0.0003)
Acres	−0.00008	−0.00002	−0.0002	−0.00005	0.0002	0.0003
Acres	(0.0001)		(0.0002)		(0.0003)
Operator age	−0.0044	−0.0011	−0.0165	−0.0048	0.0030	0.0006
Operator age	(0.0066)		(0.0119)		(0.0087)
Operator education	0.1372*	0.0349*	0.1813*	0.0531*	0.1034*	0.0204*
Operator education	(0.0399)		(0.0601)		(0.0592)
Business organization	0.1329	0.0331	0.2163	0.0637	0.1299	0.0245
Business organization	(0.1980)		(0.2705)		(0.3076)
Coop member	0.3416*	0.0796*	0.2993	0.0833	0.3502	0.0609
Coop member	(0.1877)		(0.2638)		(0.3022)
Milk/cow	0.00004*	0.00001*	0.00004	0.00001	0.00004	8.83x10⁻⁶
Milk/cow	(0.00002)		(0.00003)		(0.00003)
Purchased feed	−0.0030	−0.0008	−0.0015	−0.0004	0.0059	−0.0012
Purchased feed	(0.0040)		(0.0059)		(0.0080)
Solvency risk	0.0092*	0.0023*	0.0047	0.0014	0.0110*	0.0021*
Solvency risk	(0.0039)		(0.0069)		(0.0053)
California	0.1515	0.0405	−0.2861	−0.0784	1.1326*	0.3439*
California	(0.2855)		(0.3783)		(0.5127)
Florida	−0.5070	−0.1005	−0.5399	−0.1255	−0.0494	−0.0095
Florida	(0.5167)		(0.7639)		(0.7451)
Indiana	−0.0660	−0.0165	0.0723	0.0216	−0.1986	−0.0368
Indiana	(0.2230)		(0.3574)		(0.3279)
Michigan	−0.0415	−0.0104	−0.2602	−0.0713	0.1993	0.0424
Michigan	(0.2179)		(0.3315)		(0.3113)
Pseudo R²	0.141		0.180		0.202
WTP/$ Margin (95% confidence Interval)	0.04		0.14		−0.03
WTP/$ Margin (95% confidence Interval)	(−0.01, 0.11)		(0.05, 0.39)		(−0.18, 0.12)

State coefficients are expressed relative to Wisconsin--the omitted state. * indicates significance at p < =0.10 level.

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