scholarly journals Safety Nets or Trampolines? Federal Crop Insurance, Disaster Assistance, and the Farm Bill

2008 ◽  
Vol 40 (2) ◽  
pp. 415-429 ◽  
Author(s):  
Barry K. Goodwin ◽  
Roderick M. Rejesus
Keyword(s):  
Risk Management ◽  
Inverse Relationship ◽  
Crop Insurance ◽  
Management Policy ◽  
Safety Nets ◽  
Farm Bill ◽  
Disaster Assistance ◽  
Revenue Insurance ◽  
Legislative Proposals ◽  
Changes In Risk

We review the implications of the 2007 Farm Bill for the risk management dimensions of U.S. agriculture and policy. Legislative proposals suggest significant changes in risk management policy, including the introduction of state or national revenue insurance. We also pursue an empirical analysis of the interrelationships of crop insurance, disaster relief, and farm profitability. We find an inverse relationship between disaster assistance and insurance purchases. Our analysis also suggests that farmers that buy insurance and that receive disaster payments tend to have higher returns to farming.

Challenges in the design of crop revenue insurance

2015 ◽  
Vol 75 (1) ◽  
pp. 19-30 ◽  
Author(s):  
Barry K. Goodwin
Keyword(s):  
Crop Insurance ◽  
Commodity Prices ◽  
Original Research ◽  
Farm Bill ◽  
Content Type ◽  
Insurance Program ◽  
Revenue Insurance ◽  
Research Questions ◽  
Production Practices ◽  
Recent Policy

Purpose – The federal crop insurance program has become the cornerstone of US agricultural policy. Since its introduction in the mid-1990s, crop revenue insurance has grown in prominence and now represents nearly 90 percent of liability for major crops. The pricing and design of revenue insurance raises a number of important challenges. The 2014 Farm Bill brought about several important changes in the program, resulting in a moving target for analysts and researchers. The paper aims to discuss these issues. Design/methodology/approach – The risks are of a multivariate nature and are likely to be highly dependent on one another. The crop insurance setting is also constantly changing, with technological changes in production practices and highly volatile commodity prices. Compounding these challenges is the fact that US policymakers continually change the program. Findings – The program has indeed undergone many changes and a number of important research questions need to be addressed. Originality/value – Original research based upon recent policy.

scholarly journals Post-Adversities Recovery and Profitability: The Case of Italian Farmers

2019 ◽  
Vol 16 (17) ◽  
pp. 3189 ◽  
Author(s):  
Donatella Porrini ◽  
Giulio Fusco ◽  
Pier Paolo Miglietta
Keyword(s):  
Risk Management ◽  
Agricultural Policy ◽  
Crop Insurance ◽  
Public Support ◽  
Management Policy ◽  
Insurance Companies ◽  
Italian Case ◽  
Positive Effect ◽  
Different Levels ◽  
Natural Calamity

Insurance represents one of the main instruments, together with other risk management mechanisms, to face the adverse effects produced by natural calamity that, despite their growing intensity and the enormous costs, are still perceived as “exceptional”. Risk management is an important part of farming, and it is a concern for those governments which aim at achieving their agricultural policy targets. In this context, crop insurance can also represent a financial mitigation tool for farmers to face climate change consequences. This study is focused on the Italian case analyzing the evolution of public support and its effect on risk management policy in agriculture. Our research, based on panel data regressions, provides two different levels of analysis. The first one evaluates how the reimbursed value issued by insurance companies in favor of agricultural firms, as recovery from natural adversities, affects farmers’ profitability. The second one evaluates how the reimbursed value is used in farm management. The results of the analysis demonstrating the significance of insurance variables and their positive effect on the profitability of the farms, represent a strong advance in the farm risk management field

scholarly journals Implications of Integrated Commodity Programs and Crop Insurance

2008 ◽  
Vol 40 (2) ◽  
pp. 431-442 ◽  
Author(s):  
Keith H. Coble ◽  
Barry J. Barnett
Keyword(s):  
Public Policy ◽  
Private Sector ◽  
Federal Government ◽  
Systemic Risk ◽  
Crop Insurance ◽  
Common Theme ◽  
Farm Bill ◽  
Policy Issues ◽  
Revenue Insurance ◽  
Commodity Programs

Moving from price-triggered to area revenue–triggered programs was perhaps the most common theme among 2007 farm bill proposals. Area revenue–triggered commodity programs may make farm-level revenue insurance products seem redundant, raising questions about why the federal government should continue both programs. Area revenue–triggered programs would remove much of the systemic risk faced by producers. As a result, private sector insurers may be able to insure the residual risk without federal involvement. This paper examines the effects of moving to area revenue–triggered commodity programs with a focus on public policy issues that would likely arise.

scholarly journals 2005-06 Farm Bill Survey: Florida Producer Views on Farm Programs and Budget Priorities, Commodity Programs and Risk Management Policy

EDIS ◽  
2007 ◽  
Vol 2007 (3) ◽  
Author(s):  
Rodney L. Clouser
Keyword(s):  
Risk Management ◽  
Resource Economics ◽  
Management Policy ◽  
Farm Bill ◽  
Fact Sheet ◽  
Farm Programs ◽  
Commodity Programs ◽  
On Farm ◽  
The U.S ◽  
Risk Management Policy

FE666, a 5-page fact sheet by Rodney L. Clouser, is fourth in a series that describes the attitudes and opinions of Florida farm producers toward legislation that may be considered as the U.S. Congress debates the next farm bill. Published by the UF Department of Food and Resource Economics, December 2006.

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.

scholarly journals Evaluating the marginal risk management benefits of the supplemental coverage option

2016 ◽  
Vol 76 (3) ◽  
pp. 411-424 ◽  
Author(s):  
Nicholas Paulson ◽  
Gary Schnitkey ◽  
Patrick Kelly
Keyword(s):  
Risk Management ◽  
Risk Aversion ◽  
Expected Utility ◽  
Crop Insurance ◽  
Policy Debate ◽  
Farm Bill ◽  
Content Type ◽  
Farm Level ◽  
Insurance Program ◽  
Program Choice

Purpose The purpose of this paper is to evaluate the risk management benefits provided by the supplemental coverage option (SCO) insurance plan which was created in the 2014 Farm Bill. Specifically, the marginal expected utility benefits are compared with the potential additional subsidy cost introduced by the new program for a stylized example of a corn producer. Design/methodology/approach The paper uses a stylized simulation model examines the preferred insurance program choice for a typical Midwestern corn farmer. The expected utility of the farmer is calculated under their preferred insurance program choice both with and without the availability of the SCO program, and compared to the case where crop insurance is not available. Scenarios are examined for a range of farmer risk aversion levels, different levels of correlation between farm-level and county-level corn yields, and case with and without insurance premium subsidies. Findings The SCO program is found to enter into the preferred insurance program choice for risk averse farmers. As risk aversion increases, farmers are estimated to prefer higher coverage levels for individual products along with SCO coverage. While the availability of existing crop insurance programs are shown to substantially increase the expected utility of farmers, the marginal impact of adding SCO to the crop insurance program is relatively small. Furthermore, the additional expected benefits generated by SCO are shown to include both risk management and expected return components. With subsidies removed, the estimated marginal benefits provided by SCO are reduced significantly. Practical implications The findings of this paper can help inform the policy debate for future farm bills as agricultural support programs continue to evolve. The results in this paper can also be used to help explain farm-level decision making related to crop insurance program choices. Originality/value This paper contributes to the literature by documenting a new, federally supported risk management programs made available to farmers in the 2014 Farm Bill and evaluates the marginal benefits the SCO program offers US crop producers.

scholarly journals Risk-Reducing Effectiveness of Revenue versus Yield Insurance in the Presence of Government Payments

2008 ◽  
Vol 40 (2) ◽  
pp. 443-459 ◽  
Author(s):  
Dmitry V. Vedenov ◽  
Gabriel J. Power
Keyword(s):  
Risk Management ◽  
Viable Alternative ◽  
Support Programs ◽  
Farm Bill ◽  
Revenue Insurance ◽  
Price Insurance ◽  
Production Areas ◽  
Yield Insurance ◽  
Risk Reducing ◽  
Revenue Product

Government farm support programs such as Loan Deficiency Payments (LDP) and Counter-Cyclical Payments (CCP) have payoff structures that effectively make them costless price insurance instruments. A combination of these payments with yield insurance may provide a viable alternative to revenue insurance. This paper finds that, contrary to expectations, the revenue product analyzed is uniformly superior to yield insurance under both current (2002) and proposed (2008) Farm Bill structures of government payments. Given minor adjustments, however, yield insurance combined with government payments can provide more effective risk management than revenue insurance in production areas with low yield–price correlation.

scholarly journals Risk Management in nursing homes: an Italian experience in 2019

2020 ◽  
Vol 30 (Supplement_5) ◽  
Author(s):  
M F Furmenti ◽  
F Bert ◽  
M Rucci ◽  
U Fiandra ◽  
A Scarmozzino ◽  
...  
Keyword(s):  
Risk Management ◽  
Nursing Homes ◽  
Management Practices ◽  
Well Being ◽  
The Elderly ◽  
Management Plan ◽  
Management Policy ◽  
Insurance Company ◽  
Term Care ◽  
Starting Point

Abstract Background The ageing of the European population leads to an increasing demand for Long-Term Care services. The security and well-being of the elderly population hosted in nursing homes (NHs) needs an effective Risk Management policy, officially sanctioned in Italy by the so-called “Legge Gelli” n.24 (March 8th, 2017) and the Directive 2011/24/EU on the application of patients' rights in cross-border healthcare. In order to verify the effective application of common “best practices” in terms of Risk Management in NHs, a tool useful to analyse risk management attitudes in Northern Italy was conceived and applied in a sample of NHs. Methods The tool, developed in collaboration with the health insurance company SHAM Italia, is composed of 124 items (with a dichotomous answer -YES/NO) on topics related to various Risk Management practices. This tool was submitted in a face-to-face interview to several Directors (Health Directors or Nursing Coordinators) of NHs in the Piedmont Region. A list of randomly-chosen NHs was contacted: 4 of them were selected for the pilot study and compiled the questionnaire. Answers were gathered and analyzed through Microsoft Excel. Results Only the 25% of NHs has a Risk Management plan with objectives and indicators of effectiveness and uses Risk Analysis instruments for a pre- and post-” risk detection. Only one has employees working mainly on Risk Management alone. The 75% of the reported events were “Adverse Events”, and all the NHs (100%) have a protocol for a patient voluntary departure or for fall prevention or for bedsores prevention; while 50% have a protocol for prevention of aggressions towards operators or for patients' suicide prevention. Conclusions This work provides a starting point to face new challenges that are looming on the European Health-care Systems: the care for the elderlies needs to be perfected to reduce inefficiencies, cut useless costs and improve safety of patients in the NHs setting. Key messages Despite safety of older patients in nursing homes is not only important but mandatory in Italy, risk management tools for this setting are lacking in literature. A new tool applied in Italian nursing homes showed that risk management needs to be implemented in practice and these results can be extended to European context.

Disaster Risk Management Plans in Colombia: General Guidelines for Their Development

2021 ◽  
pp. 1-6
Author(s):  
Alejandra María Díaz-Tamayo
Keyword(s):  
Risk Management ◽  
Human Life ◽  
Disaster Risk ◽  
Disaster Risk Management ◽  
Risk Awareness ◽  
Normal Functioning ◽  
Management Plans ◽  
The Face ◽  
Changes In Risk ◽  
Evidence Based Guidelines

Abstract Over the years, Colombia has faced disaster situations that have generated changes in risk management models. These situations have brought suffering, destruction, and loss of human life, but have also served as lessons to develop procedures aimed at minimizing the risks caused by the presence of hazards. The objective of this article is to provide general evidence-based guidelines for formulating disaster risk management plans for each of the 3 action processes: risk awareness, risk reduction, and disaster management in Colombia. These plans can be achieved by preparing responses to different emergencies, which arise from threats in each of the possible scenarios, and are adverse events that alter the normal functioning of entities and communities. The implementation of these prevention strategies will allow communities to respond effectively to emergencies and recover rapidly in the face of adversity.

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