scholarly journals Risk Management Tools for Sustainable Agriculture: A Model for Calculating the Average Price for the Season in Revenue Insurance for Citrus Fruit

Agronomy ◽  
2020 ◽  
Vol 10 (2) ◽  
pp. 198 ◽  
Author(s):  
Alicia Mateos-Ronco ◽  
Ricardo J. Server Izquierdo
Keyword(s):  
Risk Management ◽  
Explanatory Power ◽  
Citrus Fruit ◽  
Average Price ◽  
Agricultural Policies ◽  
Agricultural Insurance ◽  
Management Tools ◽  
Public And Private ◽  
Revenue Insurance ◽  
Price Risks

Risk management in agriculture is at the heart of major reforms in many OECD countries and European agricultural policies. Price risks, which are generally not insurable per se, have been covered by the Common Agricultural Policy (CAP), which has been shaped as a system of protection against market shocks and an instrument for income stabilization. However, there is an increasing propensity to combine the use of public and private risk management tools as well. In Spain, revenue insurance has not yet developed in the same way as other risk coverage insurance, although it is an upcoming target of agricultural insurance policies with the aim of ensuring income stability for agricultural producers. This paper presents the results of the methodology used to draw up a composition index or model of the average price for the season or representative market field price to be used for revenue insurance purposes in citrus fruit. High explanatory power regression models and the analytic hierarchy process (AHP) were used. The results show that the average price for the season obtained reliably represents the market field prices in the country’s various producer areas.

scholarly journals Risk Management Strategies to Reduce Net Income Variability for Farmers

1985 ◽  
Vol 17 (1) ◽  
pp. 117-130 ◽  
Author(s):  
Hamid Falatoonzadeh ◽  
J. Richard Conner ◽  
Rulon D. Pope
Keyword(s):  
Risk Management ◽  
Crop Production ◽  
Management Strategies ◽  
Farm Income ◽  
Net Income ◽  
Combination Strategy ◽  
Management Tools ◽  
Risk Management Strategies ◽  
Price Risks ◽  
The Many

AbstractThe most useful and practical strategy available for reducing variability of net farm income is ascertained. Of the many risk management tools presently available, five of the most commonly used are simultaneously incorporated in an empirically tested model. Quadratic programming provides the basis for decisionmaking in risk management wherein expected utility is assumed to be a function of the mean and variance of net income. Results demonstrate that farmers can reduce production and price risks when a combination strategy including a diversified crop production plan and participation in the futures market and the Federal Crop Insurance Program (FCIP) is implemented.

scholarly journals Comparison of Public Risk Management Tools in Slovak Agriculture

2021 ◽  
Vol 92 ◽  
pp. 03003
Author(s):  
Andrea Boháčiková ◽  
Tatiana Bencová ◽  
Tomáš Rábek
Keyword(s):  
Risk Management ◽  
Value Added ◽  
Price Volatility ◽  
Agricultural Activity ◽  
Agricultural Policies ◽  
Physical And Mental Health ◽  
Negative Effects ◽  
Management Tools ◽  
Pests And Diseases ◽  
Public Risk

Research background: Risk in agriculture is a difficult concept to recognize, because farmers are exposed to different types of risks that influence their agricultural activity. The stability of farmer´s income is threatened by various factor interconnected to each other, such as market risks (price volatility, market shocks), financial risks (indebtedness, loans and credits), production risks (climate change, pests and diseases, biosecurity), technological risk (digitization, technological progress), institutional risk (regulations, environment and tax policy), and human resource risk (physical and mental health). Therefore, for the farmers it is very challenging to implement appropriate and effective risk management tools, in order to stabilize their income. Purpose of the article: Risk management offers a variety of strategies and instruments on the farm or aggregate level to copy with the risk. Also in the Pillar II of CAP 2014-2020 were introduced new risk management tools, as a response to greater price and yield variability among European countries. In the paper, we decided to analyse and compare several public risk management tools that can farmers use to increase their welfare and stabilize income. Methods: The national agricultural policies, as well as CAP are aimed at compensating farmers for the negative effects, however it is not so easy to govern and implement the tools on the farm level. The paper provides a comparative analysis of selected tools that are the most suitable for Slovak agricultural producers. Findings & Value added: The results of the paper can give the farmers ability to compare and choose between public risk management tools that could be used for risk exposure.

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 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.

Determinants of insurance adoption among Bulgarian farmers

2014 ◽  
Vol 74 (3) ◽  
pp. 326-347 ◽  
Author(s):  
Marianne Lefebvre ◽  
Dimitre Nikolov ◽  
Sergio Gomez-y-Paloma ◽  
Minka Chopeva
Keyword(s):  
Risk Management ◽  
Structural Characteristics ◽  
Probit Model ◽  
Farm Size ◽  
Agricultural Insurance ◽  
Management Tools ◽  
Regional Effect ◽  
Content Type ◽  
Insurance Sector ◽  
Recent Developments

Purpose – The purpose of this paper is to analyze the determinants of agricultural insurance adoption in Bulgaria, using a purpose-built survey of 224 farmers interviewed in 2011. The insurance decision is analyzed conjointly with other risk management decisions on the farm such as having contracts with retailers or processors, diversifying farm activities and using irrigation. Design/methodology/approach – The agricultural insurance sector in Bulgaria is presented in the broader context of the transition to a market-oriented economy and integration of Bulgarian agriculture into the EU Common Agricultural Policy. The recent developments on the determinants of farm insurance adoption in the agricultural economics and finance literature are discussed. A multivariate probit model is used in order to determine the factors explaining the adoption or non-adoption of various risk management tools by the surveyed farmers, including farm insurance. Findings – The authors find that farmers with diversified activities, using irrigation or having contracts with retailers or processors, are more likely to adopt insurance, after controlling for farms and farmers’ structural characteristics. Additionally, the authors find that the main characteristics distinguishing farmers who purchase agricultural insurance from non-users are farm size and farm location. The existence of strong regional effect suggests the importance of adapting the insurance products to the different regional contexts in Bulgaria. Originality/value – This paper contributes to the (limited) literature on agricultural insurance adoption in transition countries, currently shifting from a system where compensation against natural hazards tended to come from a State damage mitigation fund, inherited from the centrally planned governments to private and voluntary agricultural insurance. This research provides a unique data source on the Bulgarian case study.

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.

The Risk-Based Approach to Data Protection

2020 ◽  
Author(s):  
Raphaël Gellert
Keyword(s):  
Risk Management ◽  
Data Protection ◽  
Personal Data ◽  
Management Tools ◽  
General Data Protection Regulation ◽  
Regulation Theory ◽  
Régulation Theory ◽  
General Data ◽  
Data Protection Law ◽  
The Way

The main goal of this book is to provide an understanding of what is commonly referred to as “the risk-based approach to data protection”. An expression that came to the fore during the overhaul process of the EU’s General Data Protection Regulation (GDPR)—even though it can also be found in other statutes under different acceptations. At its core it consists in endowing the regulated organisation that process personal data with increased responsibility for complying with data protection mandates. Such increased compliance duties are performed through risk management tools. It addresses this topic from various perspectives. In framing the risk-based approach as the latest model of a series of regulation models, the book provides an analysis of data protection law from the perspective of regulation theory as well as risk and risk management literatures, and their mutual interlinkages. Further, it provides an overview of the policy developments that led to the adoption of such an approach, which it discusses in the light of regulation theory. It also includes various discussions pertaining to the risk-based approach’s scope and meaning, to the way it has been uptaken in statutes including key provisions such as accountability and data protection impact assessments, or to its potential and limitations. Finally, it analyses how the risk-based approach can be implemented in practice by providing technical analyses of various data protection risk management methodologies.

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