摘要：We estimate actuarially fair premium rates for yield insurance for Georgia andSouth Carolina peaches for comparison to the premium rates established by theRisk Management Agency (RMA) for the 1999 crop. The RMA premium ratesvaried from county to county, but were identical for all growers in a givencounty. The estimated premium rates decrease with the grower's expected yield.The RMA rate structure encouraged adverse selection, as premium rates weretoo low for growers with low expected yields (especially at low coveragelevels) and were too high for growers with high expected yields (especially athigh coverage levels).
