Master of Agribusiness / Department of Agricultural Economics / Allen M. Featherstone / Crop insurance, in recent years, has displaced U.S. federal farm program payments as the
most important safety net for net farm income. The business climate that crop insurance
purchasers and providers face in the future is one of increasing premiums for producers and
decreasing commissions for crop insurance companies and agents. The primary objective
of this thesis is to assess the desirability of crop insurance agency acquisitions to increase
market share for Farm Credit Services of America, considering the significant uncertainties
in the future subsidy levels and commission levels for these products. Financial analysis
and modeling crop insurance agency acquisitions is completed under a wide range of future
economic and political scenarios. The wide range of assumptions, however, does contribute
to a wide range of potential purchase prices and rates of return on crop insurance agency
acquisitions. The crop insurance industry faces uncertainty in the future and general
industry profitability will likely decline. However, an expansion strategy in a period of
reduced commissions can be profitable if acquisitions are priced appropriately and can be
made in locations where existing support services can be leveraged to support the
acquisition.
| Identifer | oai:union.ndltd.org:KSU/oai:krex.k-state.edu:2097/14043 |
| Date | January 1900 |
| Creators | Davis, Bill |
| Publisher | Kansas State University |
| Source Sets | K-State Research Exchange |
| Language | en_US |
| Detected Language | English |
| Type | Thesis |
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