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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
(St. Err.) Effect (St. Err.) Effect (St. Err.) Effect
Constant −3.4864*   −3.8595*   −3.017*  
(0.8188)   (1.3129)   (1.2385)  
Premium −0.8717* −0.2216* −0.8022* −0.2351* −1.1595* −0.2284*
(0.1883)   (0.2822)   (0.2871)  
Margin 0.0277 0.0070 0.1058* 0.0310* −0.0338 −0.0067
(0.0187)   (0.0314)   (0.0265)  
Cows 0.00004 0.00001 0.0001 0.00003 −0.0002 −0.00005
(0.00009)   (0.0001)   (0.0003)  
Acres −0.00008 −0.00002 −0.0002 −0.00005 0.0002 0.0003
(0.0001)   (0.0002)   (0.0003)  
Operator age −0.0044 −0.0011 −0.0165 −0.0048 0.0030 0.0006
(0.0066)   (0.0119)   (0.0087)  
Operator education 0.1372* 0.0349* 0.1813* 0.0531* 0.1034* 0.0204*
(0.0399)   (0.0601)   (0.0592)  
Business organization 0.1329 0.0331 0.2163 0.0637 0.1299 0.0245
(0.1980)   (0.2705)   (0.3076)  
Coop member 0.3416* 0.0796* 0.2993 0.0833 0.3502 0.0609
(0.1877)   (0.2638)   (0.3022)  
Milk/cow 0.00004* 0.00001* 0.00004 0.00001 0.00004 8.83x10−6
(0.00002)   (0.00003)   (0.00003)  
Purchased feed −0.0030 −0.0008 −0.0015 −0.0004 0.0059 −0.0012
(0.0040)   (0.0059)   (0.0080)  
Solvency risk 0.0092* 0.0023* 0.0047 0.0014 0.0110* 0.0021*
(0.0039)   (0.0069)   (0.0053)  
California 0.1515 0.0405 −0.2861 −0.0784 1.1326* 0.3439*
(0.2855)   (0.3783)   (0.5127)  
Florida −0.5070 −0.1005 −0.5399 −0.1255 −0.0494 −0.0095
(0.5167)   (0.7639)   (0.7451)  
Indiana −0.0660 −0.0165 0.0723 0.0216 −0.1986 −0.0368
(0.2230)   (0.3574)   (0.3279)  
Michigan −0.0415 −0.0104 −0.2602 −0.0713 0.1993 0.0424
(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  
(−0.01, 0.11)   (0.05, 0.39)   (−0.18, 0.12)  
  1. State coefficients are expressed relative to Wisconsin--the omitted state. * indicates significance at p < =0.10 level.