scholarly journals Problems and directions of improving the insurance of agricultural crops and plantings of perennial plantations against the risks of natural emergencies

2021 ◽  
Vol 22 (5) ◽  
pp. 777-786
Author(s):  
N. N. Semenova ◽  
A. Y. Averin
Keyword(s):  
Agricultural Sector ◽  
Crop Insurance ◽  
Federal Budget ◽  
Agricultural Crops ◽  
Agricultural Insurance ◽  
Material Interest ◽  
Separate Area ◽  
Independent Distribution ◽  
Regional Authorities ◽  
The Impact

The simultaneous existence of two interrelated forms of state aid - subsidizing classical agricultural insurance and compensation for damage to affected regions from the federal budget - requires understanding the basic principles of interaction and assessing the mutual impact of these areas of support. The purpose of the study is to identify the problems of the development of crop insurance and planting of perennial crops against the risks of natural emergencies. The research was carried out in the context of insurance statistics of Russian regions using generally accepted methods. The conducted research revealed the negative dynamics of a significant decrease in the volume of crop insurance of agricultural crops in 2016-2020. Regional authorities in the conditions of a single subsidy are not interested in the independent distribution of funds allocated by the state for the development of agricultural insurance. This is due to the fact that when the agricultural sector has significant losses as a result of the impact of natural disasters, the practice of introducing an emergency regime by the region is widespread. Which gives grounds for receiving compensation for half of the amount of damage directly from the federal budget. This determines the main problem of the development of classical agricultural insurance - the lack of expediency and material interest in this mechanism of protection of property interests both on the part of producers of agricultural products and on the part of regional authorities. In this regard, a brief justification was given for the feasibility of transforming the mechanism for providing direct assistance to the regions from the federal budget into a separate area of crop risk insurance in case of a natural emergency. This line of support will complete the classic multi-risk agricultural insurance.

The current state of the agricultural insurance market of Ukraine

2020 ◽  
Vol 2 (97) ◽  
pp. 208-218
Author(s):  
A.V. Rolinsky ◽  
◽  
Y.V. Ulianych ◽  
S.A. Ptashnyk
Keyword(s):  
Agricultural Production ◽  
Agricultural Sector ◽  
Insurance Market ◽  
Insurance Companies ◽  
Agricultural Crops ◽  
Agricultural Insurance ◽  
Stage Of Development ◽  
Current State ◽  
Increased Risk ◽  
Risk Insurance

Ukraine occupies a leading position in the world in the production and export of agricultural products. At the present stage of development of the agricultural sector, the most important task is its further development, because the country has significant potential to increase and improve the quality of production. Agricultural production is one of the important, specific and at the same time the most risky areas of human activity. Specific features of the agricultural market: high cost of facilities due to the large area of land, increased risk of production, cumulative losses due to natural disasters and progressive climate change, he duration of the production cycle, affects the profitability of farmers, necessitate the use of one of the most important tools for minimizing risks — insurance and, if necessary, further diversification of risks through reinsurance. The article considers the main indicators of agricultural insurance: in terms of insurance companies, in terms of regions, in terms of agricultural crops. The amount of insurance payments in terms of insurance companies and agricultural crops is analyzed. Trends in animal insurance are presented. The agricultural insurance market in Ukraine is developing slowly, but in recent years still shows a positive upward trend. For a country with a huge potential of the agricultural sector of the economy, the saturation of the agricultural insurance market with insurance services and the actual volume of agricultural risk insurance, undoubtedly, are insufficient. Now agricultural insurance in Ukraine is actively developing. However, despite the positive dynamics, the current state of agricultural insurance in Ukraine does not meet its main task - to manage risks in the agricultural sector to ensure its stable operation and sustainable development of the agricultural sector of the economy. The current system of agrarian risk insurance in Ukraine, including the provision of state support to the agricultural sector, requires improvement and should be aimed at ensuring adequate protection of the interests of agricultural producers and food security, stabilizing production and income in the agricultural sector and encouraging the best technology agricultural production

scholarly journals Rating exotic price coverage in crop revenue insurance

2020 ◽  
Vol 80 (5) ◽  
pp. 609-631
Author(s):  
A. Ford Ramsey ◽  
Sujit K. Ghosh ◽  
Barry K. Goodwin
Keyword(s):  
Crop Yields ◽  
Crop Insurance ◽  
Serial Dependence ◽  
Archimedean Copulas ◽  
Agricultural Insurance ◽  
Content Type ◽  
Insurance Policies ◽  
Revenue Insurance ◽  
The Impact ◽  
Vine Copulas

PurposeRevenue insurance is the most popular form of insurance available in the US federal crop insurance program. The majority of crop revenue policies are sold with a harvest price replacement feature that pays out on lost crop yields at the maximum of a realized or projected harvest price. The authors introduce a novel actuarial and statistical approach to rate revenue insurance policies with exotic price coverage: the payout depends on an order statistic or average of prices. The authors examine the price implications of different dependence models and demonstrate the feasibility of policies of this type.Design/methodology/approachHierarchical Archimedean copulas and vine copulas are used to model dependence between prices and yields and serial dependence of prices. The authors construct several synthetic exotic price coverage insurance policies and evaluate the impact of copula models on policies covering different types of risk.FindingsThe authors’ findings show that the price of exotic price coverage policies is sensitive to the choice of dependence model. Serial dependence varies across the growing season. It is possible to accurately price exotic coverage policies and we suggest these add-ons as a possible avenue for developing private crop insurance markets.Originality/valueThe authors apply hierarchical Archimedean copulas and vine copulas that allow for flexibility in the modeling of multivariate dependence. Unlike previous research, which has primarily considered dependence across space, the form of exotic price coverage requires modeling serial dependence in relative prices. Results are important for this segment of the agricultural insurance market: one of the main areas that insurers can develop private products around the federal program.

The Impact of Enhancements to Weather-forecasting Services on Agricultural Investment Behavior: A Field Experiment in Taiwan

2020 ◽  
Author(s):  
Yu-Hsuan Lin ◽  
Hen-I Lin ◽  
Fang-I Wen ◽  
Sheng-Jang Sheu
Keyword(s):  
Field Experiment ◽  
Imperfect Information ◽  
Agricultural Sector ◽  
Weather Forecasting ◽  
Crop Insurance ◽  
Background Information ◽  
Investment Strategies ◽  
Weather Forecasts ◽  
Decisions Under Risk ◽  
The Impact

AbstractA better understanding of farmers’ investment strategies associated with climate and weather is crucial to protecting farming and other climate-exposed sectors from extreme hydro-meteorological events. Accordingly, this study employed a field experiment to investigate the investment decisions under risk and uncertainty by 213 farmers from four regions of Taiwan. Each was asked 30 questions that paired “no investment”, “investment with crop insurance”, “investment with subsidized crop insurance”, and “investment” as possible responses. By providing imperfect information and various probabilities of certain states occurring, the experimental scenarios mimicked various types of weather-forecasting services. As well as their socioeconomic characteristics, the background information we collected about the participants included their experiences of natural disasters and what actions they take to protect their crops from weather damage. The sampled farmers became more conservative in their decision-making as the weather forecasts they received became more precise, except when increases in risk were associated with high returns. The provision of insurance subsidies also had a conservatizing effect. However, considerable variation in investment preferences was observed according to the farmers’ crop types. For those seeking to create comprehensive policies aimed at helping the agricultural sector deal with the costs of damage from extreme events, this study has important implications. This approach could be extended to research on the perceptions of decision-makers in other climate-exposed sectors such as the construction industry.

scholarly journals Weather Risk Management In The Agricultural Sector Of Poland And In The World

2015 ◽  
Vol 18 (3) ◽  
pp. 99-114
Author(s):  
Dorota Michalak
Keyword(s):  
Agricultural Sector ◽  
Research Question ◽  
Weather Conditions ◽  
Coherent System ◽  
Agricultural Insurance ◽  
Agricultural Industry ◽  
Agriculture Sector ◽  
Adverse Weather ◽  
Agricultural Business ◽  
The Impact

Farming is an activity which is heavily exposed to risk. Farmers have to deal daily with the change of weather, crops, and prices, resulting not only in fluctuations in income, but also in the need to incur emergency expenses. The purpose of this paper is to analyse the available catastrophic insurance dedicated to the agriculture sector, with particular emphasis on compulsory insurance and with a comparison of the insurance systems of other countries and the Polish system. I also examine the level of awareness of Polish entrepreneurs in the agricultural industry of the impact of weather conditions on the business. The methodology used to answer the research question was the CAWI survey and market research. Despite the mandatory insurance of the selected risks, farmers still do not see the necessity to purchase insurance. The very design of the instrument raises questions, especially about the enforcement system for compliance with the insurance obligation and the type of risk being insured. The low awareness of the impact of weather on agricultural business and the possibility to protect the farm and benefits via the undertaken insurance activities is an undoubted problem in the development of insurance instruments on the market to protect the agricultural sector against adverse weather conditions. While one can see some similarities when comparing agricultural insurance schemes in different countries, nonetheless it is clear that these systems are significantly different from each other. This difference is justified, as is not possible to create a single coherent system which would take into account the economic, social, and cultural differences. Viewed against the background of insurance schemes operating in other countries, the Polish system looks disadvantageous. Given the rapid increase in the number of extreme weather phenomena and their increasing scale there is an urgent need for reforms.

Prospects for the use of the “model budget” in the distribution of equalization grants in Russia

2019 ◽  
pp. 21-38
Author(s):  
Alexander N. Deryugin ◽  
Ilya A. Sokolov
Keyword(s):  
Intergovernmental Relations ◽  
Unfunded Mandates ◽  
Interregional Inequality ◽  
Alternative Approach ◽  
The Russian Federation ◽  
Regional Authorities ◽  
High Degree ◽  
Equalization Grants ◽  
The Impact ◽  
Budget Expenditure

The paper analyzes the impact of the “model budget” on the problems of intergovernmental relations in the Russian Federation: a high proportion of expenditure obligations of regional and local budgets and a high degree of interregional inequality in fiscal capacity and socio-economic development. It was concluded that the planned broader use of the “model budget” will not solve the problem of unfunded mandates and will lead first to a significant reduction in incentives for regional authorities to develop the territorial revenue base, and then to economic slowdown in the country. As an alternative approach to improving intergovernmental relations, options are being considered for adjusting the parameters of the equalization transfers distribution formula, the procedure for determining their total volume and calculating the budget expenditure index. In solving the problem of unfunded mandates, an equally important role is given to the procedure for preparing a financial and economic rationale for draft laws.

DAMPAK KEBIJAKAN FISKAL TERHADAP KINERJA SEKTOR PERTANIAN DI SULAWESI TENGGARA

2017 ◽  
Vol 1 (1) ◽  
Author(s):  
La Ode Jabuddin ◽  
Ayub M Padangaran ◽  
Azhar Bafadal Bafadal
Keyword(s):  
Fiscal Policy ◽  
Interest Rates ◽  
Agricultural Sector ◽  
Simultaneous Equations ◽  
Poor People ◽  
Land Area ◽  
Factors Affecting ◽  
Historical Simulation ◽  
The Impact ◽  
Direct Expenditure

This study aims to: (1) Knowing the dynamics of fiscal policy and the performance of the agricultural sector, (2) Analyze the factors that influence fiscal policy and the performance                   of the agricultural sector, and (3) Analyzing the impact of fiscal policy on the performance of the agricultural sector. The data used in this study were pooled 2005-2013 data in the aggregate. Econometric model the impact of fiscal policy on the performance of the agricultural sector is built in the form of simultaneous equations, consisting of 7 equations with 25 total variables in the model, 7 endogenous variables, 12 exogenous variables, and 6 variables lag. The model is estimated by 2SLS method SYSLIN procedures and historical simulation with SIMNLIN procedure.The results showed that: (1) The development of fiscal policy in Southeast Sulawesi from year to year tends to increase, (2) The performance of the agricultural sector from the aspect of GDP has decreased, from the aspect of labor is still consistent, in terms of investment to grow positively, and assign roles which means to decrease the number of poor people, (3) factors affecting fiscal policy is local revenues, equalization funds, other revenues, as well as the lag fiscal policy, (4) the factors that affect the performance of the agricultural sector from the aspect GDP is labor, direct expenditure and GDP lag; from the aspect of labor is the total labor force, investment, land area, direct expenditure, as well as the lag of labor; from the aspect of investment is influenced by GDP per capita, land area, interest rates and investment lag; as well as from the aspect of poor people, are affected by population, investments, direct expenditure and poverty lag, (5). Fiscal policy impact on the agricultural sector GDP increase, a decrease in the number of poor, declining agricultural laborers, and a decrease in the amount of investment in the agricultural sector.Keywords: Fiscal policy, the performance of the agricultural sector, the simultaneous equations

Intra-sectoral and Intersectoral Parity Issues in Pricing of Agricultural Crops: A Preliminary Analysis

1987 ◽  
Vol 26 (4) ◽  
pp. 401-417
Author(s):  
Sarfraz K. Qureshi
Keyword(s):  
Preliminary Analysis ◽  
Agricultural Sector ◽  
Terms Of Trade ◽  
Agricultural Crops ◽  
Allocation Of Resources ◽  
Price Determination ◽  
Policy Makers ◽  
The Government ◽  
Distribution Of Income ◽  
Over Time

Intersectoral terms of trade play a cruc1al role in determining the sectoral distribution of income and resource allocation in the developing countries. The significance of intra-sectoral terms of trade for the allocation of resources within the agricultural sector is also widely accepted by research scholars and policy-makers. In the context of planned development, the government specifies production targets for the agricultural sector and for different crops. The intervention of government in the field of price determination has important implications for the achievement of planned targets. In Pakistan, there is a feeling among many groups including farmers and politicians with a rural background that prices of agricultural crops have not kept their parities intact over time and that prices generally do not cover the costs of production. The feeling that production incentives for agriculture have been eroded is especially strong for the period since the early 1970s. It is argued that strong inflationary pressures supported by a policy of withdrawal of government subsidies on agricultural inputs have resulted in rapid increases in the prices paid by agriculturists and that increases in the prices received by farmers were not enough to compensate them for the rising prices of agricultural inputs and consumption goods.

A Macroeconomic Analysis of Agricultural Sector in Nigeria

2019 ◽  
Vol 5 (1) ◽  
pp. 18-25
Author(s):  
Isah Funtua Abubakar ◽  
Umar Bambale Ibrahim
Keyword(s):  
Value Chain ◽  
Crop Production ◽  
Agricultural Sector ◽  
Time Series Data ◽  
Tourism Industry ◽  
Series Data ◽  
Size Analysis ◽  
The Real ◽  
Real Gdp ◽  
The Impact

This paper attempts to study the Nigerian agriculture industry as a panacea to growth as well as an anchor to the diversification agenda of the present government. To do this, the time series data of the four agriculture subsectors of crop production, livestock, forestry and fishery were analysed as stimulus to the Real GDP from 1981-2016 in order to explicate the individual contributions of the subsectors to the RGDP in order to guide the policy thrust on diversification. Using the Johansen approach to cointegration, all the variables were found to be cointegrated. With the exception of the forestry subsector, all the three subsectors were seen to have impacted on the real GDP at varying degrees during the time under review. The crop production subsector has the highest impact, however, taking size-by-size analysis, the livestock subsector could be of much importance due to its ability to retain its value chain and high investment returns particularly in poultry. Therefore, it is recommended that, the government should intensify efforts to retain the value chain in the crop production subsector, in order to harness its potentials optimally through the encouragement of the establishment of agriculture cottage industries. Secondly, the livestock subsector is found to be the most rapidly growing and commercialized subsector. Therefore, it should be the prime subsector to hinge the diversification agenda naturally. Lastly, the tourism industry which is a source through which the impact of the subsector is channeled to the GDP should be developed, in order to improve the impact of such channel to GDP with the sole objective to resuscitate the forestry subsector.

Technological Innovation and the Agricultural Sustainability

2016 ◽  
Vol 7 (2) ◽  
pp. 1-14
Author(s):  
Rachida Khaled ◽  
Lamine Hammas
Keyword(s):  
Technological Innovation ◽  
Energy Production ◽  
Agricultural Sector ◽  
Negative Impact ◽  
Agricultural Productivity ◽  
Agricultural Sustainability ◽  
Net Income ◽  
Agriculture Sector ◽  
The Impact

The diffusion of the technological innovation can affect the agricultural sector in the three-sided (social, economic and environmental), a hand, it can contribute to solve problems of the agricultural sector: the effects of the climatic changes, the farming exodus and the migration and the problems of poverty and it can improve the agricultural productivity. But on the other hand, he can lead to new problems, such as depletion of energy resources caused by excessive use of energizing technologies, pollution of air and water and the destruction of soil by industrial waste. This paper aims to theoretically and empirically analyze the role of technological innovation in improving agricultural sustainability through the impact of mechanization on agricultural productivity, energy production and net income per capita for a panel of three Maghreb countries (Algeria, Morocco and Tunisia) during the period 1997-2012. By using simultaneous equations, the authors' finding that technological innovation cannot achieve the purpose of sustainable development in the agriculture sector in the Maghreb countries through the negative impact of mechanization and research and development on agricultural productivity.

Sign in / Sign up

Export Citation Format

Share Document