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No abstract

Thailand

The article evaluates the expected welfare gain from voluntary partial government-subsidized maize insurance in north-east China. A total of 356 maize-growing households’ risk preferences from Linkou County of Heilongjiang province are examined and their expected welfare gains were analysed by the expected utility theory with each farmer’s unique risk preference. The research found that 217 out of 356 households are rational decision-makers and most of them are risk averse. In term of expected welfare gain, the research pointed out that providing the existing crop insurance creates a welfare gain of about CNY 177 per hectare. However, this estimated welfare gain might be reduced to only CNY 124 per hectare if the local government decided to provide 100 per cent insurance premium subsidy with a lower level of protection at the same fiscal budget. Further, the results indicated that about 36 per cent of the rational households made wrong decisions in buying the crop insurance, and households with fewer family members and a lower portion of non-farming income are more likely to make wrong decisions. Additional education may help these farmers to make better decisions and increase future welfare gain to a potential level of about CNY 275 per hectare on average.

Contract farming is typically considered an appropriate measure for small-scale farmers to solve their constraints and problems. However, despite positive effects, low participation in and high dropout rates from contract farming schemes remain challenges. Therefore, this study objects to evaluate preferences for contract attributes and attribute levels among contracting buyers, farmers, and government officials through data triangulation from key informant interviews, focus group discussions, and participant observations. Based on Henry Garrett Ranking, Rank Based Quotient, and Rank Based Sum methods, results indicate that the most important attributes were price options, payment, delivery arrangement, input provision, input-use requirements, and product quality standards. Despite a consensus on the ranking of the contract attributes, the preferences for the attribute levels among the stakeholders were heterogeneous. It is recommended that attributes and their levels should be pertinent in contract agreements. Thus, contract design with an adjusted or premium price, 50% of estimated payment before harvesting and the rest after delivery three to five days or lump-sum immediate payment, delivery after harvesting, inputs provision by the contractors through the representative branches or stores located at the local areas or cooperatives, banning active-ingredients or flexible use of inputs from the contractors to produce Good Agricultural Practices or organic products are considerable options.