scholarly journals Precautionary savings as an instrument to hedge the risk of hydrological drought in irrigated agriculture

2022 ◽  
Author(s):  
Gómez Limón J.A. ◽  
Guerrero Baena M. Dolores ◽  
Fernández Gallardo José A.
Keyword(s):  
Hydrological Drought ◽  
Precautionary Savings ◽  
Irrigated Agriculture

scholarly journals Hydrological drought index insurance for irrigation districts in Spain

2016 ◽  
Vol 14 (3) ◽  
pp. e0105 ◽  
Author(s):  
Teresa Maestro ◽  
Maria Bielza ◽  
Alberto Garrido
Keyword(s):  
Drought Index ◽  
Expert Panel ◽  
Crop Insurance ◽  
Hydrological Drought ◽  
Irrigated Agriculture ◽  
Index Insurance ◽  
Insurance Scheme ◽  
Insurance System ◽  
Irrigation Districts ◽  
Hydrological Drought Index

Hydrological droughts are a major risk for irrigated agriculture in many regions of the world. The aim of this article is to propose an insurance tool to help irrigators manage the risk of water scarcity in the framework of the Spanish Crop Insurance System (SCIS). Only the United States Insurance System provides this type of coverage, but has very restrictive conditions. To determine the type of insurance scheme that better fits with the SCIS and to the Spanish irrigated agriculture, an expert panel was held with the participation of all stakeholders involved in crop insurance. Following the expert panel conclusions, an hydrological drought index insurance (HDII) addressed to irrigation districts (ID) is proposed. It would compensate water deficits suffered in the whole ID. We detail the conditions that the ID should fulfill to be eligible for HDII. HDII is applied to the Bardenas Irrigation District V (ID-V) in Spain, and the hedging effectiveness of the instrument is analyzed comparing ID-V’s gross margins with and without the insurance contract. Results suggest that the proposed insurance scheme could provide an effective means of reducing farmers’ vulnerability to water shortages and there is no major impediment for it to be included as a new line in the SCIS. This type of insurance can be generalized to any ID fulfilling the conditions mentioned in this paper.

scholarly journals Dealing with drought in irrigated agriculture through insurance schemes: an application to an irrigation district in Southern Spain

2015 ◽  
Vol 13 (4) ◽  
pp. e0106 ◽  
Author(s):  
Jorge Ruiz ◽  
María Bielza ◽  
Alberto Garrido ◽  
Ana Iglesias
Keyword(s):  
Time Series Data ◽  
Hydrological Drought ◽  
Southern Spain ◽  
Irrigation District ◽  
Series Data ◽  
Irrigated Agriculture ◽  
Small Scale ◽  
Drought Risk ◽  
Insurance Premiums ◽  
Drought Insurance

<p class="Abstract">Hydrological drought is expected to have an increasing impact on both crop and fruit yields in arid and semi-arid regions. Some existing crop insurance schemes provide coverage against water deficits in rain-fed agriculture. The Prevented Planting Program in the USA covers against drought for irrigated agriculture. However, drought insurance for irrigated agriculture is still a challenge for companies and institutions because of the complexity of the design and implementation of this type of insurance. Few studies have attempted to evaluate the risk of loss due to irrigation water scarcity using both stand-alone production functions and crop simulation models. This paper’s contributions are that it evaluates the suitability of AquaCrop for calculating drought insurance premiums for irrigated agriculture and that it discusses contract conditions and insurance design for hydrological drought risk coverage as part of a traditional insurance product, with on-field loss assessment in combination with a trigger index. This method was applied to an irrigation district in southern Spain. Our insurance premium calculation showed that it is feasible to apply this method provided that its data requirements are met, such as a large enough set of reliable small-scale yield and irrigation time series data, especially soil data, to calibrate AquaCrop. The choice of a trigger index should not be underestimated because it proved to have a decisive influence on insurance premiums and indemnities. Our discussion of the contract conditions shows that hydrological drought insurance must comply with a series of constraints in order to avoid moral hazard and basis risk.</p>

scholarly journals Insuring Water Supply in Irrigated Agriculture: A Proposal for Hydrological Drought Index-Based Insurance in Spain

Water ◽  
2019 ◽  
Vol 11 (4) ◽  
pp. 686 ◽  
Author(s):  
M. Guerrero-Baena ◽  
José Gómez-Limón
Keyword(s):  
Water Supply ◽  
Agricultural Production ◽  
Mediterranean Climate ◽  
Drought Index ◽  
Hydrological Drought ◽  
Irrigated Agriculture ◽  
Drought Risk ◽  
Negative Effects ◽  
Insurance Scheme ◽  
The Face

In Mediterranean-climate regions, irrigated agriculture is especially vulnerable to the risk of hydrological drought and irrigators are particularly concerned about its negative effects. During a hydrological drought episode, irrigators receive insufficient water to meet their crops’ water needs, giving rise to the so-called ‘water supply gap’. In such circumstances, agricultural production and irrigators’ incomes are considerably reduced. In order to minimize the negative effects associated with water supply gaps, a new index-based drought insurance scheme for irrigation is proposed, linked to the variable ‘stock of water available in reservoirs’. The proposal, although tailored to Spain, could be easily adapted to other countries or regions because the features of hydrological drought risk are similar worldwide. It is expected that the proposed scheme will improve drought risk management in irrigated agriculture, stabilizing irrigators’ incomes and guaranteeing the sustainability of irrigated agriculture in the face of global change.

FORMATION OF HUMAN RESOURCES POLICY AND LABOR POTENTIAL OF THE MELIORATIVE INDUSTRY OF THE AGRICULTURAL INDUSTRY OF THE RUSSIAN FEDERATION

2020 ◽  
Author(s):  
Alexandra Ugryumova ◽  
Mikhail Zamakhovski ◽  
Lyudmila Pautova ◽  
Denis Olgarenko
Keyword(s):  
Russian Federation ◽  
Land Reclamation ◽  
Production Costs ◽  
Irrigated Agriculture ◽  
Industrial Complex ◽  
Personnel Policy ◽  
The Russian Federation ◽  
Irrigated Lands ◽  
Sectoral Development ◽  
Labor Potential

Scientifically substantiated personnel industry policy contributes to the implementation of an innovative development scenario, provides better results with reduced production costs, which determines the relevance of the studying. The main goal of the work was identified factors and indicators which have regulatory influence on the state and development of the personnel potential of the industry. Diagnostics of the labor potential of land reclamation by federal districts revealed leaders and outsiders of sectoral development. The studying made it possible to justify the steady trend of the shortage of reclamation personnel in comparison with the calculated indicators. Objective and subjective reasons and factors that hinder the effective using of the industry’s personnel potential are distinguished. The concept of industry’s labor potential is clarified. The studying of changes in labor productivity in agriculture has confirmed a twofold increasing in this indicator for the period from 2014 to 2018. Methodological approaches to the indicators of assessing the labor potential of the reclamation industry are substantiated. The groups of socio-economic indicators of the reclamation industry’s effectiveness are identified. The methodology for determining the quantitative characteristics of labor potential on irrigated lands is specified, which is depended on the area of irrigated lands. The labor potential of the reclamation industry in terms of staffing the industry is studied. The main positive and negative trends of the personnel policy and the labor potential’s formation of the agro-industrial complex’s reclamation sector of the Russian Federation are specified, the industry personnel policy is assessed as passive, which does not allow predicting the needs for industry personnel, evaluate staff activities and analyze personnel problems. Highlighted characteristic trends in personnel potential in the federal district and regions of the Russian Federation allow: to develop unified approaches to manage this industry development factor; to develop recommendations to improve the efficiency of advanced training and retraining of personnel in irrigated agriculture. The implementation of the recommendations will contribute to increase the efficiency of the managing the human potential’s process of irrigated agriculture at the level of federal, regional and municipal authorities of the reclamation sector of the agro-industrial complex of Russia.

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