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Modeling Withdrawal from AgriStability by Ontario Beef Farmers: An Application of Prospect Theory

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dc.contributor.advisor Weersink, Alfons
dc.contributor.advisor Cao, Ying (Jessica) Ferner, Emma 2016-06-27T19:12:30Z 2016-06-27T19:12:30Z 2016-06 2016-06-17 2016-06-27
dc.description.abstract AgriStability is a government insurance program that protects producers against agricultural risk, and triggers payments based on a historical moving average of the whole-farm profit margin. Though the program fees are highly subsided, participation in the program has been declining over the past decade. This study uses the longitudinal Ontario Farm Income Database (OFID) to investigate Ontario beef farmers' participation behavior in response to farm-level income fluctuations, program payments, farm characteristics, and policy changes between 2003 and 2013. Prospect theory is used to model farmers’ perceived gain and losses, and their resulting withdrawal behavior. Results indicate that larger AgriStability and ad hoc program payments decrease the likelihood of withdrawal, two years of not receiving a payment increases likelihood of withdrawal, and lager farms are more sensitive to changes in net income than program payments. The study aims to provide insight into how farmers perceive and utilize government-funded risk management programs. en_US
dc.description.sponsorship OMAFRA Project #030047 en_US
dc.language.iso en en_US
dc.subject Prospect Theory en_US
dc.subject AgriStability participation en_US
dc.subject panel data en_US
dc.subject program exit behaviour en_US
dc.subject whole-farm income insurance en_US
dc.title Modeling Withdrawal from AgriStability by Ontario Beef Farmers: An Application of Prospect Theory en_US
dc.type Thesis en_US Food, Agriculture and Resource Economics en_US Master of Science en_US Department of Food, Agricultural and Resource Economics en_US
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