scholarly journals How does crop insurance influence pesticide use? Evidence from French farms

2020 ◽  
Author(s):  
Geoffroy Enjolras ◽  
Magali Aubert
Keyword(s):  
Risk Management ◽  
Strategic Change ◽  
Crop Insurance ◽  
Pesticide Use ◽  
Management Tools ◽  
Private Companies ◽  
Field Crops ◽  
Farm Accountancy Data Network ◽  
Farm Scale ◽  
Using Data

AbstractThe purpose of this paper is to examine how crop insurance influences pesticide use, the two decisions being strategic for risk management at the farm scale. To that aim, the paper implements propensity score matching, difference-in-differences models, and a combination of these two methods in order to compare two similar populations of insured and non-insured farmers. Using data from the Farm Accountancy Data Network (FADN), we consider French farms which cultivate field crops and quality wine-growing, the two main productions that participate the most to crop insurance and that use intensively pesticides. The analysis is performed between 2008 and 2012 given a strategic change in the crop insurance system in 2010 that strongly incites farmers to purchase crop insurance with private companies. At the same time, pesticide use was progressively discouraged through public policies. Estimations show that while pesticide use decreases for all crops, the purchase of crop insurance policies has no impact for field crops and quality wine-growing. Meanwhile, the land allocated to each crop within the farm changes. These results question a possible substitutability, for some productions, between crop insurance and pesticides as risk management tools.

scholarly journals Factors affecting the use of price risk management tools by large commercial maize producers in South Africa

2000 ◽  
Vol 3 (1) ◽  
pp. 75-96 ◽  
Author(s):  
A. Brown ◽  
G. F. Ortmann ◽  
M. A.G. Darroch
Keyword(s):  
Risk Management ◽  
Formal Education ◽  
Crop Insurance ◽  
Ordinary Least Squares ◽  
Price Risk ◽  
Least Squares Regression ◽  
Sources Of Information ◽  
Management Tools ◽  
Complementary Method ◽  
Price Risk Management

Ordinary Least Squares regression was used to examine what characteristics affect the use of maize price risk management tools by a sample of large commercial South African maize producers in 1998. The use of maize storage facilities, off-farm employment, formal crop insurance, length of formal education of operators and the proportion of farm turnover from maize, all positively influence producers' use of these tools. Crop insurance thus appeared to be a complementary method of risk management. In contrast to previous United States studies, operators' self-rated score of marketing management ability was negatively related to the use of price risk management tools. Maize marketing seminars and other sources of information on managing price risk would reduce adoption costs and encourage broader producer participation

scholarly journals Special Issue on Crop Insurance and Risk Management

2008 ◽  
Vol 37 (1) ◽  
pp. iii-iv
Author(s):  
Calum G. Turvey
Keyword(s):  
Risk Management ◽  
Crop Insurance ◽  
Special Issue ◽  
Management Tools ◽  
Market Risks ◽  
The World ◽  
Mutual Interest ◽  
Management Workshop ◽  
The U.S

The role of crop insurance and new risk management tools for agriculture is evolving at an almost dizzying pace. One needs only to examine recent postings on the Risk Management Agency's website to see how expansive this is. Moreover, throughout the world we are witness to a host of new programs available in both developed and developing countries that are largely based on the U.S. experience. It is necessary that academics first recognize the scope of issues facing production and market risks in agriculture and then respond with new and creative ways to address the problems. To these needs, the Crop Insurance and Risk Management Workshop—the provenance of the papers in this volume—was designed to bring academics with research and extension responsibilities together with industry to explore this ever-changing landscape and discuss research and outreach of mutual interest.

scholarly journals Effects of Insurance Adoption and Risk Aversion on Agricultural Production and Technical Efficiency: A Panel Analysis for Italian Grape Growers

Economies ◽  
2022 ◽  
Vol 10 (1) ◽  
pp. 20
Author(s):  
Simone Russo ◽  
Francesco Caracciolo ◽  
Cristina Salvioni
Keyword(s):  
Technical Efficiency ◽  
Crop Insurance ◽  
Stochastic Frontier ◽  
Risk Averse ◽  
Stochastic Frontier Approach ◽  
Intermediate Inputs ◽  
Input Use ◽  
Farm Accountancy Data Network ◽  
Using Data ◽  
Profit Maximisation

This article aims to evaluate the effect of insurance on production, technical efficiency, and input use of Italian specialised-quality grape growers. A panel instrumental variable stochastic frontier approach is applied over the years 2008–2017 using data from the Farm Accountancy Data Network. The results show the requirement to correct for the endogeneity that stems from insurance adoption. Insurance has an enhancing effect on production and efficiency and reduces the use of intermediate inputs. It suggests that insurance helps to diminish the risk-averse farmers’ suboptimal input use due to the presence of uncertainty. Crop insurance leads risk-averse farmers to behave as if they were risk neutral and employs the profit-maximising input vector. Therefore, by reducing the risks linked to the uncertainty of outcomes, crop insurance leads grape growers to go in the direction of profit maximisation.

scholarly journals Factors Affecting Farmers' Utilization of Agricultural Risk Management Tools: The Case of Crop Insurance, Forward Contracting, and Spreading Sales

2009 ◽  
Vol 41 (1) ◽  
pp. 107-123 ◽  
Author(s):  
Margarita Velandia ◽  
Roderick M. Rejesus ◽  
Thomas O. Knight ◽  
Bruce J. Sherrick
Keyword(s):  
Risk Management ◽  
Crop Insurance ◽  
Probit Analysis ◽  
Farm Income ◽  
Multinomial Probit ◽  
Agricultural Risk ◽  
Management Tools ◽  
Factors Affecting ◽  
Adoption Decisions ◽  
Forward Contracting

Factors affecting the adoption of crop insurance, forward contracting, and spreading sales are analyzed using multivariate and multinomial probit approaches that account for simultaneous adoption and/or correlation among the three risk management adoption decisions. Our empirical results suggest that the decision to adopt crop insurance, forward contracting, and/or spreading sales are correlated. Richer insights can be drawn from our multivariate and multinomial probit analysis than from separate, single-equation probit estimation that assumes independence of adoption decisions. Some factors significantly affecting the adoption of the risk management tools analyzed are proportion of owned acres, off-farm income, education, age, and level of business risks.

scholarly journals Farmers’ Attitudes towards Risk—An Empirical Study from Poland

Agronomy ◽  
2020 ◽  
Vol 10 (10) ◽  
pp. 1555 ◽  
Author(s):  
Piotr Sulewski ◽  
Adam Wąs ◽  
Paweł Kobus ◽  
Kinga Pogodzińska ◽  
Magdalena Szymańska ◽  
...  
Keyword(s):  
Risk Management ◽  
Risk Aversion ◽  
Research Area ◽  
Agricultural Economics ◽  
Self Assessment ◽  
Management Tools ◽  
Decisions Under Risk ◽  
Farm Accountancy Data Network ◽  
Important Research Area ◽  
Strong Risk Aversion

Risk aversion is an important research area in the field of agricultural economics in the last years. Creating effective and efficient risk management tools in an increasingly volatile economic and natural environment requires proper recognition of farmers’ behavior and attitudes towards risk. In this context, the main aim of the paper was to estimate farmers’ attitudes towards risk and identification of farm’s and farmer’s characteristics in dependency on risk aversion level. The assessment of farmers’ preferences towards risk was based on hypothetical games in a representative sample of 600 Polish farms—participants of Farm Accountancy Data Network (FADN). Based on the interviews with farmers, a relative risk aversion coefficient has been estimated. Results revealed that on average Polish farmers have quite a strong risk aversion. Their attitudes towards risk are strongly linked with their self-assessment regarding their way of making decisions under risk. Some relations between farmers’ risk aversion and perception of selected risk factors could also be observed. The results revealed that the application of specified risk management tools by farmers and their potential reaction to a significant income drop are related to risk aversion level.

scholarly journals Evaluation of risk management tools for stabilising farm income under CAP 2014-2020

2017 ◽  
Vol 17 (1) ◽  
pp. 3 ◽  
Author(s):  
Alba Castañeda-Vera ◽  
Alberto Garrido
Keyword(s):  
Risk Management ◽  
Public Expenditure ◽  
Crop Insurance ◽  
Farm Income ◽  
Crop Diversification ◽  
Agricultural Policies ◽  
Management Tools ◽  
Direct Payments ◽  
Income Variability ◽  
On Farm

<p>Guaranteeing farm income stability is an objective of the European Union’s and the Spanish agricultural policies. In this paper, CAP direct payments, diversification, crop insurance and an Income Stabilisation Tool (IST) were compared considering (i) their effect on farm income and income stability, (ii) the expected farmers’ willingness for adoption, and (iii) the efficiency of public expenditure invested in supporting them. Main conclusions point at direct payments and  crop diversification as the most effective measures in decreasing income variability. Nevertheless, using crop  insurance or an IST has potential for both improving farm resilience to income variability and limiting public expenditure.</p>

scholarly journals Discussion: What Have We Learned from the New Suite of Risk Management Programs of the Food, Conservation, and Energy Act of 2008?

2010 ◽  
Vol 42 (3) ◽  
pp. 537-541 ◽  
Author(s):  
Bradley D. Lubben ◽  
James L. Novak
Keyword(s):  
Risk Management ◽  
Crop Insurance ◽  
Management Decision ◽  
Management Tools ◽  
Farm Bill ◽  
Integrated Risk ◽  
Farm Programs ◽  
Management Decision Making ◽  
Fundamental Shift ◽  
Effective Analysis

New revenue-based support programs in the 2008 Farm Bill represent a fundamental shift in farm programs and risk management decision-making. However, complexity, uncertainty, economics, and, arguably, an incomplete analysis of the new Average Crop Revenue Election (ACRE) program all contributed to low enrollment in the new program in 2009. An effective analysis of ACRE should consider farm programs as part of an integrated risk management portfolio, including crop insurance, marketing, and other risk management tools as opposed to a separate lottery program. Improving this integration could be one of the most significant consequences of the 2008 Farm Bill.

Design Thinking as a Tool for the Analysis of Project Risks

2019 ◽  
Vol 16 (6) ◽  
pp. 60-77
Author(s):  
E. V. Vasilieva ◽  
T. V. Gaibova
Keyword(s):  
Risk Management ◽  
Risk Analysis ◽  
Design Thinking ◽  
Management Tools ◽  
Project Risk ◽  
Team Members ◽  
Investment Projects ◽  
Risk Management Process ◽  
Project Objectives ◽  
Project Risk Analysis

This paper describes the method of project risk analysis based on design thinking and explores the possibility of its application for industrial investment projects. Traditional and suggested approaches to project risk management have been compared. Several risk analysis artifacts have been added to the standard list of artifacts. An iterative procedure for the formation of risk analysis artifacts has been developed, with the purpose of integrating the risk management process into strategic and prompt decision-making during project management. A list of tools at each stage of design thinking for risk management within the framework of real investment projects has been proposed. The suggested technology helps to determine project objectives and content and adapt them in regards to possible; as well as to implement measures aimed at reducing these risks, to increase productivity of the existing risk assessment and risk management tools, to organize effective cooperation between project team members, and to promote accumulation of knowledge about the project during its development and implementation.The authors declare no conflict of interest.

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