scholarly journals PERHITUNGAN HARGA PREMI ASURANSI PERTANIAN YANG BERBASIS INDEKS CURAH HUJAN MENGGUNAKAN METODE BLACK SCHOLES

2017 ◽  
Vol 6 (2) ◽  
pp. 161 ◽  
Author(s):  
IDA AYU GDE KHASMANA PUTRI ◽  
KOMANG DHARMAWAN ◽  
NI KETUT TARI TASTRAWATI
Keyword(s):  
Risk Management ◽  
Agricultural Sector ◽  
Management Tool ◽  
Agricultural Insurance ◽  
High Rainfall ◽  
Premium Payment ◽  
Rainfall Index ◽  
Black Scholes ◽  
As If

Agricultural insurance is insurance in the agricultural sector which is relatively new introduced in Indonesia. Agricultural insurance is based on a rainfall index.  It is a risk management tool that is relatively new in Indonesia. This study was purposed to determine the steps required in determining the value of the rainfall index on agricultural insurance and calculating the contract value of agricultural insurance which had to be paid on the agricultural insurance that is on rainfall index-based by using Black-Scholes method. The result of this research are if the amount of rainfall was 130,4 mm so the amount of premium payment equals Rp. 60.694, as well as if the amount of high rainfall was 179,9  mm so the amount of premium payment equals Rp.902.760.

scholarly journals PENENTUAN HARGA PREMI ASURANSI PERTANIAN BERBASIS INDEKS CURAH HUJAN DENGAN MENGGUNAKAN METODE PEMBANGKIT DISTRIBUSI EKSPONENSIAL CAMPURAN

2018 ◽  
Vol 7 (2) ◽  
pp. 141
Author(s):  
SAYID QOSIM ◽  
KOMANG DHARMAWAN ◽  
LUH PUTU IDA HARINI
Keyword(s):  
Risk Management ◽  
Weather Generator ◽  
Management Tool ◽  
Simulated Rainfall ◽  
Crop Failure ◽  
Agricultural Insurance ◽  
Stochastic Weather Generator ◽  
Agriculture Sector ◽  
Rainfall Index ◽  
Mixed Exponential Distribution

Agricultural insurance is an insurance in agriculture sector that is relatively newly introduced in Indonesia. Agricultural insurance based on rainfall index is one of the risk management tool to keep farmers in case of crop failure. This study aims to determine the steps in determining the value of rainfall index on agricultural insurance and calculate the value of agricultural insurance premiums based on simulated rainfall index by Stochastic weather generator with mixed exponential distribution. The results of this study provide value if the amount of rainfall 103,71 mm so that the amount of premium payments equal to Rp19.016, and if the rainfall is high 128.35 mm then the amount of premium payment equal to Rp1.088.000.

scholarly journals PENENTUAN NILAI PREMI ASURANSI PERTANIAN BERBASIS INDEKS SUHU PERMUKAAN MENGGUNAKAN METODE BURN ANALYSIS

2018 ◽  
Vol 7 (4) ◽  
pp. 322
Author(s):  
A.A DWI MARSITA ANGGRAENI ◽  
KOMANG DHARMAWAN ◽  
DESAK PUTU EKA NILAKUSMAWATI
Keyword(s):  
Risk Management ◽  
Surface Temperature ◽  
Insurance Premium ◽  
Analysis Method ◽  
Agricultural Insurance ◽  
Temperature Index ◽  
Premium Payment ◽  
Long Run ◽  
Related Risk ◽  
Climate Parameter

Temperature is an important factor in the production of agricultural commodities. For this reason, goverments needs to protect farmers in order to continue their farming. Climate-based agricultural insurance is an alternative to climate-related risk management. Insurance premium is given when the temperature index lower than the pre determined trigger index. The purpose of this study is to determine the stages and assumptions in determining the value of agricultural insurance premiums based on surface temperature index on cocoa commodities using the method of burn analysis. The temperature index was determined using the burn analysis method with the temperature as the climate parameter. Trigger values ??are determined based on long run times. In this paper, the result is that when the temperature index lower than the determined trigger value, trigger payments as much as Rp.10.931.960,40 / Ha based on trigger index as many 26.145 ° C, so amount of premium payment equals Rp 215.776.

scholarly journals Determinants of agricultural insurance adoption: evidence from farmers in the state of São Paulo, Brazil

2020 ◽  
Vol 55 (4) ◽  
pp. 547-566
Author(s):  
Marcelo José Carrer ◽  
Rodrigo Lanna Franco da Silveira ◽  
Marcela de Mello Brandão Vinholis ◽  
Hildo Meirelles De Souza Filho
Keyword(s):  
Risk Management ◽  
Empirical Analysis ◽  
Technical Assistance ◽  
Sao Paulo ◽  
The State ◽  
Management Tool ◽  
Farm Size ◽  
São Paulo ◽  
Agricultural Insurance ◽  
Content Type

Purpose The purpose of this study is to investigate the determinants of agricultural insurance adoption by farmers of the state of São Paulo, Brazil. Design/methodology/approach Primary data from the 2015/2016 crop season was collected from a sample of 175 farmers. Logit econometric models were applied to identify the variables that affect the probability of agricultural insurance adoption. Findings The empirical results show that the education level, access to technical assistance, use of management tools and farm size positively affect the probability of adopting agricultural insurance. In addition, farmers who produce soybean and/or corn are more likely to use insurance. On the other hand, the higher the farmers’ propensity to take risk the lower the likelihood of using insurance. Research limitations/implications The empirical analysis is based on cross-sectional data of a sample of 175 farmers of the state of São Paulo. The use of panel data with a larger sample of farmers, considering a period of years, could provide additional information. Originality/value To the best of the knowledge, this is the first empirical analysis about determinants of agricultural insurance adoption by Brazilian farmers, considering behavioral factors. The findings provide useful insights for policymakers in formulating risk management programs in the Brazilian agricultural markets. A better understanding about the determinants of insurance adoption is also relevant for private companies that sell insurance to farmers. Therefore, the paper may contribute with the diffusion of rural insurance as risk management tool in Brazilian agriculture.

scholarly journals MODERN APPROACHES TO RISK MANAGEMENT OF EXPORT OPERATIONS IN THE AGRICULTURAL SECTOR OF THE NATIONAL ECONOMY

2020 ◽  
Author(s):  
Oleksandr Bondarenko ◽  
Keyword(s):  
Risk Management ◽  
National Economy ◽  
Agricultural Sector ◽  
Management Tool ◽  
Futures Contracts ◽  
Financial Risks ◽  
Economic Activities ◽  
Agricultural Producers ◽  
Agricultural Enterprises ◽  
Credit Risks

Agriculture is an industry of strategic importance for Ukraine, the development of which is aimed not only at obtaining commercial profits, but also at ensuring food and national security. Agricultural production and its export activities are subject to the influence of uncertainty factors that lead to the emergence of risks in economic activities. These factors determine are: natural conditions, unstable market conditions, political and economic instability. The purpose of the study is to identify the most significant risks in the export operations of agricultural producers and to study modern approaches to their management. The current practice of managing the export business of industrial and commercial enterprises in the scientific literature is widely spread, at the same time in the context of the Silk spirits of food there is a lack of food. In the statistic, the basic principles of the export-oriented enterprises of the national economy of the Silskoy state gift are grounded: logistic, currency and financial, environmental and credit risks.The role of risks in the formation of export strategies of agricultural producers are shown. Stages of management of export operations in the agricultural sector of the national economys by methodology The World Bank are substantiated ARM. Formation of a risk management strategy for export operations in the agricultural sector of the national economy carried out by minimization of financial risks (futures contracts, swaps and options); reducing the risks of entering into contractual relations with insolvent partners. For reduce risks exporters are used insurance services. An enterprise can create reserves for unforeseen costs, predict sectoral (for suppliers) price dynamics, involve suppliers in the company's activities by concluding participation agreements. It is substantiated that the highest risks for Ukraine's export-oriented agribusiness are logistics, monetary, financial, environmental and credit risks. It is shown that implementation of ARM is a modern comprehensive risk management tool for export-oriented agricultural enterprises. Prospects for further research is development of methods for assessing the export risks of agricultural producers.

scholarly journals More insurance subsidies for European farmers – is it needed?

2015 ◽  
Vol 9 (4) ◽  
pp. 33-38
Author(s):  
Anna Lóránt ◽  
Maria Farkasné Fekete
Keyword(s):  
Risk Management ◽  
Developing Countries ◽  
Agricultural Sector ◽  
Contingent Valuation Method ◽  
Market Price ◽  
Price Volatility ◽  
Jel Classification ◽  
Policy Outcomes ◽  
Agricultural Risk ◽  
Agricultural Insurance

In addition to traditional sources of uncertainties, such as market price volatility and animal and plant health-related risks, the impacts of climate change have recently become a major concern in the agricultural sector throughout the world. Insurance has been commonly proposed as a key instrument in farm risk management, and agricultural insurance schemes have become more widespread both in developed and developing countries. We conducted a case study in the UK to investigate farmers’ risk perception and willingness to pay for crop insurance by using contingent valuation method (CVM). Similarly to the experience from developing countries, we found that farmers are less willing to pay for insurance, however they do take actions to reduce their risks. While these results suggest that the provision of premium subsidies to European farmers can be justified; in order to avoid counter-productive policy outcomes, one may consider the introduction of a risk-based approach in agricultural risk management. JEL classification: Q14

scholarly journals Application of Markov Model-Based IoT in Agricultural Insurance and Risk Management

2021 ◽  
Vol 2021 ◽  
pp. 1-8
Author(s):  
Wei Chen ◽  
Yuansheng Jiang
Keyword(s):  
Risk Management ◽  
Panel Data ◽  
Internet Of Things ◽  
Markov Model ◽  
Agricultural Production ◽  
Disaster Risk ◽  
Management Tool ◽  
The Internet ◽  
Agricultural Insurance ◽  
The Internet Of Things

As the foundation of the national economy, agriculture is a high-risk, weak industry. Affected by many factors, agricultural production is subject to catastrophe risks from time to time. Agricultural production is mainly faced with two major threats, natural disaster risk and market risk. As an effective risk management tool, the production and promotion of agricultural insurance have played an essential role in guaranteeing the development of the agricultural industry in some developed countries and major agricultural countries in the world. This article combines the Internet of Things and Markov model for agricultural insurance risk management. First, we combine the structure of the Internet of Things and select relevant statistical data. Then, we build a panel data system, starting from two perspectives in different regions and analyze agricultural insurance’s current development and characteristics at each stage. In addition, we use the Markov model to build a panel data model to explore the specific impact mechanisms deeply. We also study the effects of disaster risk levels in different regions on the development of agricultural insurance. After simulation verification, we believe that this model can effectively promote the balanced regional development of agricultural insurance.

scholarly journals A New Tool for Covering Risk in Agriculture: The Revenue Insurance Policy

Risks ◽  
2021 ◽  
Vol 9 (7) ◽  
pp. 131
Author(s):  
Angelo Frascarelli ◽  
Simone Del Sarto ◽  
Giada Mastandrea
Keyword(s):  
Risk Management ◽  
Agricultural Sector ◽  
Insurance Coverage ◽  
Price Volatility ◽  
Insurance Companies ◽  
Insurance Policy ◽  
Agricultural Insurance ◽  
Revenue Insurance ◽  
The Common ◽  
Using Data

Over the last years, the agricultural sector has faced increasing risks related not only to production activities, but also to climate adversity and a higher frequency of extreme events. These factors, combined with increased price volatility in the markets, have caused greater exposure to risk for farmers. For this reason, risk management in agriculture has taken on an important role within the Common Agricultural Policy. However, in recent years, gradual disaffection of farmers, low penetration of insurance in the arable sector, and a greater need for insurance coverage against market risks have characterised the subsidised risk management system. For all these reasons, starting in 2017, the National Agricultural Insurance Plan has provided new possibilities for covering risks. This paper aims to contribute to the debate on risk management linked to the revenue insurance policy recently adopted in Italy. Using data from the Italian Farm Accountancy Data Network, we simulate the application of the revenue insurance policy with a sample of Italian farms operating in the common and durum wheat sectors. The main findings show that the revenue insurance policy stipulation is, overall, sustainable for both farms and insurance companies.

scholarly journals Investigating the agricultural losses due to climate variability: An application of conditional value-at-risk approach

2021 ◽  
pp. 71-78
Author(s):  
Sukono Sukono ◽  
Riaman Riaman ◽  
Sudradjat Supian ◽  
Yuyun Hidayat ◽  
Jumadil Saputra ◽  
...  
Keyword(s):  
At Risk ◽  
Risk Management ◽  
Climate Variability ◽  
Value At Risk ◽  
Agricultural Sector ◽  
Risk Measure ◽  
Planting Date ◽  
Conditional Value At Risk ◽  
Climate Index ◽  
Agricultural Insurance

The agricultural sector is directly affected by climate variables. The presence of climate variability causes a considerable risk to agricultural productivities. Thus, risk management is an alternative to reduce risks, including optimizing the allocation of farmland and choosing crop insurance for a specific planting date. The purpose of this study is to investigate the agricultural risk management through risk measure of climate variability using the Conditional Value-at-Risk (CVaR) in rice production. This paper investigated several possible considerations of agricultural insurance premiums based on losses climate index. We concluded that the climate index insurance policy is the best choice that farmers can choose for each planting date, the higher the significance value considered, the more the value of Value-at-Risk and Conditional Value-at-Risk.

scholarly journals AGRICULTURAL INSURANCE IN ESTONIA – CURRENT SITUATION AND FARMERS’ WILLINGNESS TO USE CROP INSURANCE

2016 ◽  
Vol 10 (1) ◽  
pp. 122-128 ◽  
Author(s):  
Maire Nurmet ◽  
Katrin Lemsalu ◽  
Anne Põder
Keyword(s):  
Risk Management ◽  
Risk Sharing ◽  
Crop Insurance ◽  
Insurance Companies ◽  
Management Tool ◽  
Agricultural Risk ◽  
Agricultural Insurance ◽  
Production Risk ◽  
Farm Survey ◽  
Willingness To Use

Farmers are strongly exposed to agricultural risks and have to adapt their strategies to the new uncertainties resulting from the changes in the EU agricultural policy. So far, risk sharing strategies in the context of production risk management have received little attention in Estonia. The aim of the paper is to examine the current availability of agricultural insurance in Estonia and the farmers’ attitudes towards insurance as a risk management tool. The analysis is based on a farm survey conducted in 2015. At first, an overview on available insurance products is given. Secondly, farmers’ interest towards insurance and the connection between farm characteristics and the interest, is studied. The results show that availability of agricultural risk management instruments is limited in Estonia. Agricultural insurance includes protection against livestock production risks provided by two insurance companies, and there are no instruments for crop insurance available. The results of farm survey show that farmers’ interest towards crop-yield and crop income insurance is relatively limited. The main reasons cited by the farmers are too high insurance premiums and the lack of trust in the insurance provider honouring the insurance claim. Younger farmers were more interested in insurance.

scholarly journals INSURANCE SYSTEM IN THE AGRICULTURAL SECTOR: STATE AND PROBLEMS

2020 ◽  
Vol 4 ◽  
pp. 103-108
Author(s):  
R.K. KONUSPAYEV ◽  
◽  
T.ZH. DEMESSINOV ◽  
T.A. TAIPOV ◽  
◽  
...  
Keyword(s):  
Risk Management ◽  
Crop Production ◽  
Agricultural Sector ◽  
Management Tool ◽  
Industrial Complex ◽  
Insurance System ◽  
Insurance Sector ◽  
East Kazakhstan ◽  
Insurance Mechanism ◽  
The Republic

The relevance of the topic is determined by the importance in modern conditions of formation of mechanism for effective risk management in agriculture - one of the priority tasks of the development of agro-industrial complex. The authors analyze the problems of using the insurance mechanism in agricultural sector of the Republic of Kazakhstan. Its importance in increasing the efficiency of production in the branches of agro-industrial complex is shown. Variants of using the insurance system such as risk management tool are considered, foreign experience in this area is studied. The features that characterize the insurance activity in crop production are revealed. For agricultural crops, this is government participation aimed at protecting farms from losses caused by emergencies; financial assistance in the implementation of insurance is manifested in the form of compensation for damage caused by insured events. It has been established that the existing insurance sector does not solve the main problem of protecting the property interests of policyholder related to compensation for losses if insurance payments are required. It was revealed that this mechanism has not received widespread use due to the extremely short term for concluding insurance policy. The aggregated nature of the indices makes it possible to obtain quantitative estimates of the probability of insured event occurring, to a certain extent, possessing the property of universality, regardless of the indicators used and methodology of their calculation. The experience of applying the mechanism of this type of insurance services on the materials of the East Kazakhstan region has been studied.

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