Professor David Hennessy and Assistant Professor Hongli Feng published in the most recent issue of American Journal of Agricultural Economics. Hennessy and Feng authored the article "Systemic Risk, Relative Subsidy Rates, and Area Yield Insurance Choice" with Ph.D student Xuche Gong of Iowa State University. Their article investigates the nature of crop yield systemic risk and its implications for farmers' area yield insurance choices. They find that threshold relative area subsidy rate (TRASR) values indicate that current area yield insurance subsidy rates discourage farmers from choosing area yield insurance over individual yield insurance, especially at low area yield insurance coverage levels.

Systemic Risk, Relative Subsidy Rates, and Area Yield Insurance Choice
Xuche Gong, David A. Hennessy, Hongli Feng
American Journal of Agricultural Economics
https://doi.org/10.1111/ajae.12342