Aggregate Data for FCIP Yield Calibration

Source: R/calibrate_yield.R

This function processes Summary of Business (SOB) and Actuarial Data Master (ADM) data for a single year and computes the variables necessary to calibrate the Federal Crop Insurance Program (FCIP) yield model, as described in Tsiboe et al. (2025).

Internally, the function:

  • Filters SOB data to include only coverage type "A" and insurance plans 1, 2, 3, and 90.

  • Joins with ADM actuarial parameters for the relevant insurance pools and elections.

  • Computes adjusted liabilities and indemnities for revenue policies to yield equivalents.

  • Derives approved yields and extrapolates implied rate yields via optimization.

  • Computes key rating factors like alpha, delta, and base premium rates.

prepare_yield_calibration_data(sobtpu, control = rfcipPackage_controls())

Arguments

sobtpu

A data.table of filtered Summary of Business data

control

A list of control parameters for model calibration. Passed to the DEoptim optimizer and other internals. Use rfcipPackage_controls to create and configure this list.

Value

A data.table with one row per unique insurance contract (defined by year, pool, and election), containing:

  • commodity_year, plus all variables in rfcipCalcPass::FCIP_INSURANCE_POOL and rfcipCalcPass::FCIP_INSURANCE_ELECTION

  • rate_yield: The optimized yield input used in rating.

  • approved_yield: Yield used to compute liability.

  • yield_indem: Per-acre indemnified yield.

  • reference_amount, reference_rate, fixed_rate, exponent_value

  • rate_differential_factor, unit_residual_factor, alpha, delta

  • base_premium_rate_adj, simulation_weight, and revealed_budget

Observations with missing or invalid optimization results are dropped.

References

Tsiboe, Francis, Dylan Turner, and Jisang Yu. (2025). Utilizing large-scale insurance data sets to calibrate sub-county level crop yields. Journal of Risk and Insurance, 92(1), 13-165.

Coble, K. H., Knight, T. O., Goodwin, B. K., Miller, M. F., Rejesus, R. M., & Duffield, G. (2010). A comprehensive review of the RMA APH and COMBO rating methodology final report. USDA Risk Management Agency.