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

Frascarelli, Angelo; Sarto, Simone Del; Mastandrea, Giada

doi:10.3390/risks9070131

Cited by 5 publications

(2 citation statements)

References 21 publications

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“…However, farmers should not rely solely on public support as the main incentive for agricultural insurance. Farmers should consider risk management tools as indispensable technical means to protect and stabilize their income, not only as accessories to farm activity (Frascarelli et al 2021).…”

Section: Discussionmentioning

confidence: 99%

Factors Influencing the Take-Up of Agricultural Insurance and the Entry into the Mutual Fund: A Case Study of the Czech Republic

Kislingerová

Špička

2022

JRFM

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The objective of the study was to identify the main factors influencing farmers’ willingness to take up agricultural insurance and participate in a mutual fund for non-insurable risks in the Czech Republic. Responses from 214 representative farms were processed using descriptive statistics, paired t-tests, binary logistic regression, and contingency analysis. The regression model showed the influences of agricultural area, distrust in insurance companies, the probability of losing more than 20% of production, the price of insurance premiums, and having a developed formal strategy on the likelihood of taking up agricultural insurance. Unlike previous empirical studies, this study did not attempt to look at agricultural insurance as an isolated risk management tool but rather to show the interrelationship between farmers’ decisions to join a mutual fund and their choice of agricultural insurance. Farmers expect most agricultural production risks to become significantly more important. With the ongoing economic crisis in the EU, there is growing pressure to reduce ad hoc public spending on coverage of non-insurable risks and to seek alternative solutions. The study also shows the need for a holistic approach to the design of risk management support systems in EU countries.

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Section: Discussionmentioning

confidence: 99%

Factors Influencing the Take-Up of Agricultural Insurance and the Entry into the Mutual Fund: A Case Study of the Czech Republic

Kislingerová

Špička

2022

JRFM

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“…In summary, rural financial problems stem from the following reasons: a typical inter-separated dual financial structure [18], adverse selection and moral hazard caused by information asymmetry [19], and interest rate control in the case of information asymmetry [20]. Furthermore, farming systems are increasingly facing the unknown, with uncertainty and surprises [21]. Digital finance has the advantages of wide coverage, high speed, and low cost, and can make up for the shortcomings of rural finance.…”

Section: Related Literature and Theoretical Underpinnings 21 Related ...mentioning

confidence: 99%

Does the Adoption of Digital Payment Improve the Financial Availability of Farmer Households? Evidence from China

Chen

Ren

2022

Agriculture

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Digital finance carries the expectation of achieving inclusiveness. The purpose of this paper is to explore how digital finance can improve the financial availability and the extent to which digital finance can improve the financial availability of farmer households. Based on micro-rural survey data in China from 2017 to 2019, employing the Cov-AHP weighting method, this study measured the index of financial availability (IFA) of farmer households in terms of three dimensions: investment, bank loans, and private finance. We analyzed the mechanism of how digital payment adoption affects the IFA of farmer households based on the Long Tail Effect theory of Anderson. Ordinary least squares method and ordered probit model was constructed to empirically test the impact of payment adoption on the IFA of farmer households. The research results show that (1) the IFA of Chinese rural households is still at a low level; (2) while the availability of investment is very low, the availability of bank loans is relatively high; and (3) the adoption of digital payment has a positive impact on improving the IFA of farmer households, including the availability of investments, bank loans, and private finance. The results are robust to model misspecification and reverse causality. The evidence also suggests that the adoption of digital payment mainly affects the financial availability of farmer households through information effects. Therefore, attention should be paid to broadening information channels and promoting the adoption of digital payments to improve financial access for farmer households. This study contributes to the comprehensive understanding of the financial situation of households s by constructing a financial availability indicator system from three dimensions. By analyzing the impact of digital payment adoption on farmers’ financial availability, this study helps to understand how digital finance can play a positive role in farmer households’ financial conditions.

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Assessment of the Effectiveness of State Support for Insurance in Agriculture in Russia

Семенова

Averin

2022

REGIONOLOGY

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Introduction. Risk insurance is the most important financial instrument that ensures the sustainable development of agriculture. The specifics of the implementation of agricultural risks (the unpredictable nature of the onset and the significant intensity of the impact on the activities of agricultural producers) determines the increased interest in this area of support for agriculture from the state. The purpose of the article is to assess the effectiveness of state support in the field of agricultural risk insurance in Russia. Materials and Methods. The authors analyzed the reports of the Ministry of Agriculture of the Russian Federation, as well as the National Union of Agricultural Insurers, characterizing the dynamics of development and the effectiveness of state support in the field of insurance of risks in agriculture. To assess the effectiveness of state support for agricultural producers when concluding an insurance contract, the following algorithm was used: first, an analysis of the achievement of planned indicators of agricultural insurance with state support; second, an analysis of the impact of the size of government funding for insurance on the financial results and financial sustainability of agricultural producers; third, the correlation analysis of the closeness of the relationship between the main indicators of insurance with indicators of financial results and financial stability of agricultural producers. Results. The analysis of the dynamics of the development of agricultural insurance with government support in Russia, as well as the contribution of government subsidies to the financial result of agricultural producers is carried out. On the basis of correlation analysis, there is a tight link between insurance indicators such as insurance coverage and insurance indemnity and indicators of financial results and financial sustainability of agriculture. Discussion and Conclusion. The results obtained indicate a significant impact of government financing of insurance risks in agriculture on the development of the industry. The results of the study could be used by public authorities and Governments in formulating development strategies and agricultural insurance programs, developing appropriate financial instruments for State support for agricultural producers.

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

Cited by 5 publications

References 21 publications

Factors Influencing the Take-Up of Agricultural Insurance and the Entry into the Mutual Fund: A Case Study of the Czech Republic

Factors Influencing the Take-Up of Agricultural Insurance and the Entry into the Mutual Fund: A Case Study of the Czech Republic

Does the Adoption of Digital Payment Improve the Financial Availability of Farmer Households? Evidence from China

Assessment of the Effectiveness of State Support for Insurance in Agriculture in Russia

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