Farm Income Insurance as an Alternative for Traditional Crop Insurance

Janowicz-Lomott, Marietta; Łyskawa, Krzysztof; Rozumek, Paweł

doi:10.1016/s2212-5671(15)01727-x

Cited by 6 publications

(2 citation statements)

References 6 publications

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“…Revenue (or income) insurance may be offered in a form of individual instruments but in this case, an important problem remains moral hazard and a need to record revenues/ income or as index-based insurance (Janowicz-Lomott et al, 2015). In economic practice, the most complex form of "revenue-income" insurance in agriculture can be gross margin insurance, which, in addition to protecting revenues, also provides the protection against changes in certain production costs.…”

Section: Revenue and Margin Insurancementioning

confidence: 99%

Index-Based Insurance of Gross Margin in Agriculture – Key Challenges

Sulewski¹,

Wąs²

2018

Zagadnienia Ekonomiki Rolnej

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the paper attempts at assessment of usefulness of the index-based insurance of gross margin compared to traditional production insurances. the analysis used FADN data and was limited to the example of winter wheat. the conducted simulations showed that the category of gross margin is characterized by higher variability than yields or prices, thus the costs of its insurance expressed as fair premium would be higher than the costs of traditional production insurance. However, the major problem in case of index-based insurances is still the basic risk related to the possibility that part of the insured will not receive compensation even though they incurred losses. the conducted analyses showed that the assumption of the index basing on the average drop in yields in a voivodeship would result in major percentage of errors as regards payment and refusal of payment of the compensation compared to individual insurance. Structuring of the system of index-based insurances would require collecting data-to construct indices-from areas of much smaller territorial coverage.

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Section: Revenue and Margin Insurancementioning

confidence: 99%

Index-Based Insurance of Gross Margin in Agriculture – Key Challenges

Sulewski¹,

Wąs²

2018

Zagadnienia Ekonomiki Rolnej

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“…Walters and Preston [12] described the value of insurance for producers and the importance of using a combination of public and private risk management tools. In view of the latest trends in agricultural and economic policies, other authors point out that there is a degree of pressure to increase the volume of market methods and individual co-participation in the costs associated with lessening income risks in agriculture [13].…”

Section: Introductionmentioning

confidence: 99%

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

Ronco

Izquierdo

2020

Agronomy

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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.

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Local Wisdom-Based Food Security in Facing the Climate Crisis in Indonesia

Anugrah,

Setiawan

2024

Climate Change Management

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Farm Income Insurance as an Alternative for Traditional Crop Insurance

Cited by 6 publications

References 6 publications

Index-Based Insurance of Gross Margin in Agriculture – Key Challenges

Index-Based Insurance of Gross Margin in Agriculture – Key Challenges

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

Local Wisdom-Based Food Security in Facing the Climate Crisis in Indonesia

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