Integrating Agricultural Risks Management Strategies in Selected EU Partner Countries: Syria, Tunisia, Turkey

Santeramo, Fabio Gaetano; Capitanio, Fabian; Adinolfi, Felice

doi:10.2139/ssrn.2491415

Cited by 12 publications

(9 citation statements)

References 22 publications

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“…The results show that the Chinese traditional cultures has a positive effect on avoiding the MHB with regard to the excessive use of pesticides, and it provides a new idea of risk management. It is necessary to compare our results with the existing literatures [43][44][45][46]. The existing literature mainly evaluated the effects of public risk management policies, the results showing that the risk management programs may incentivize activities harmful for the environment, while our study mainly examines how Chinese farmers' moral hazard behavior in crop production is influenced by traditional culture, and our results confirm the conventional view that Chinese traditional culture helps to guide farmers to adopt positive behaviors, such as environmental friendly behavior.…”

Section: Discussionmentioning

confidence: 99%

The Impact of Traditional Culture on Farmers’ Moral Hazard Behavior in Crop Production: Evidence from China

Zhang

2016

Sustainability

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To obtain higher yields, farmers may excessively use pesticides when they grow crops (like rice, vegetables, or fruit), causing moral hazard behavior. This paper examines how Chinese farmers' moral hazard behavior in crop production is influenced by their traditional culture. A semi-parametric logistic model is used to investigate the impact of Chinese traditional culture on farmers' moral hazard behavior. The results reveal that Chinese traditional culture has a positive effect on ameliorating the farmers' excessive use of pesticides in crop production, which leads to a moral hazard in agro-product safety. Specifically, when we control for extraneous variables, the probability of moral hazard decreases by 15% if farmers consider their traditional culture in their production decisions. Moreover, the probability of moral hazard decreases by 17% if farmers consider the traditional culture as a powerful restraint regarding the use of pesticides. Our analysis provides some supportive evidence on the effect of Chinese traditional culture on mitigating farmers' excessive use of pesticides.2 of 15 economic activities, in order to maximize their own utility, will have inherent incentives to take actions unfavorable for others. As in the agro-products market, there is a principal-agent relationship between buyers and farmers, the buyers (such as agricultural enterprises, wholesalers, supermarkets, and the final consumers) are the principal, while the farmers are the agent. They sign a production contract (sometimes farmers may use certificates instead of contracts, like organic certificates), the buyers commission the farmers to produce agro-products with safe quality, and there are strict regulations on the application of pesticides, including variety, time, and dose. However, as farmers' behaviors cannot be monitored during the production period, in order to get greater yields, they may pursue activities unfavorable to buyers, such as increasing pesticide concentration, adopting banned pesticides, and using pesticides during the harvest period; with farmers' behaviors seriously violating the agreement of the contract, this is thought to be moral hazard behavior (MHB) [7]. Moral hazard hinges crucially on information asymmetry; therefore, the risk-taking party knows more about his (or her) intentions than the party paying for the consequences of the risk [8]. Given the quality information asymmetry in the agro-products market, farmers may excessively use pesticides in the pursuit of higher profits.Recently, there has been growing interest in studying farmer's MHB. Many analyses have been undertaken to uncover the factors affecting farmers' MHB devoted to crop production. In the literature, factors affecting farmers' MHB cover demographic characteristics, such as age, gender, level of education, risk preference, farmers' cognition, external environment of agricultural production, and characteristics of government regulation, among others [7,[9][10][11]. In China, the government plays a significant role in regulating and s...

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Section: Discussionmentioning

confidence: 99%

The Impact of Traditional Culture on Farmers’ Moral Hazard Behavior in Crop Production: Evidence from China

Zhang

2016

Sustainability

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“…Neapibrėžtumas, turintis ryšį su atitinkamais rezultatais, apima nepalankiai susiklosčiusias aplinkybes (įvykius) ar praradimus (nuostolius), kurie neigiamai veikia kiekvieno subjekto gerovę ir kurie yra neatsiejami nuo rizikos suvokimo (OECD 2009). Mokslinėje literatūroje gana daug ir plačiai diskutuojama apie rizikas, su kuriomis susiduria ir kurias patiria žemės ūkio sektorius, taip pat apie jų rūšis bei atitinkamą rizikų grupavimą (Kozlovskaja 2014;World Bank 2005;Barnett et al 2008;Altukhov 2011;Drollette 2009;Schneider 2010;Ullah et al 2014;Janowicz-Lomott, Lyskawa 2014;Santeramo et al 2014). Pastebima, kad dažniausiai yra aprašomos ir tyrinėjamos šios žemės ūkyje patiriamos rizikos rūšys: ekonominė, šalies arba politinė, valiutos kurso kitimo, komercinė, finansinė, gamybinė, investavimo, nelikvidumo (Girdžiūtė, Slavickienė 2011).…”

Section: Autoriusunclassified

Agriculture Sector Risk Management / Žemės Ūkio Sektoriaus Rizikos Valdymas

Stasytytė

Dužinskytė

2016

Mokslas – Lietuvos Ateitis

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Agriculture sector is characterized by a particular specificity that is not considered in other fields and because of that agriculture sector is defined as highly risky sector. Response to risk is still very im-portant and responsible activity in this field. According to this, the process and applied strategies of risk management make and ensure that the sector activity and operations are more stable and effective. The aim of the article reflects the need to distinguish the most appropriate agricultural risk management tools in order to manage agricultural risks as effectively as possible. In the article the agricultural risk management tools are distinguished and after that the advantages and disadvantages of it are presented and the possibilities of mentioned tools are analyzed. Using agricultural risk management tools, the important interactions between agri-cultural risks and risks management instruments are discovered. The aim of the article is reflected by studied conception of risk and agricultural risk types, explored risks sources and specificity of agriculture sector. Žemės ūkio sektorius išsiskiria iš kitų sričių tam tikrais požymiais, dėl kurių yra laikomas padidintos rizikos sritimi. Atsakas į riziką išlieka gana svarbus ir atsakingas veiksmas, užtikrinantis stabilią bei efektyvią sektoriaus veiklą. Straipsnio tikslas – pateikus ir išanalizavus rizikos rūšis, su kuriomis žemės ūkio sektoriuje susiduriama dažniausiai ir kurių įtaka šiam sektoriui yra didžiausia, pateikti galimus rizikos valdymo būdus sektoriaus patiriamoms rizikoms mažinti. Norint pasiekti tikslą, yra analizuojamos žemės ūkio sektoriaus rizikos ir jų rūšys, kilmė, žemės ūkio sektoriaus ypatumai. Darbe yra pristatoma nemažai žemės ūkio sektoriaus rizikų valdymo instrumentų, įvardijami pagrindiniai jų privalumai ir trūkumai.

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“…Government interventions through policies can play important roles in improving the risk management strategies including those of the global supply chain. However, the process of the agreements between countries along the supply chain can in contrast amplify the price and market risks (Santeramo et al 2014). Girdžiūtė (2012) and Aimin (2010) suggest that the sources may be related to each other.…”

Section: Introductionmentioning

confidence: 99%

Risk Analysis for Sustainability of Oil Palm Smallholdings

Chalil

Barus

2019

JMA

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Oil palm plantation is well known as a profitable business. In general, oil palm smallholders have a higher income than farmers of other commodities. However, most smallholdings have land sizes that do not reach the economic scale. Together with the lack of managerial skills, smallholdings are likely to be more vulnerable to production and price fluctuations, which in turn affects their business sustainability. This study was conducted to analyze the possibility and impact of production and price changes to the oil palm smallholdings' sustainability. Data were collected from 240 schemed and independent smallholders in Asahan, Labuhan Batu, Labuhan Batu Utara and Labuhan Batu Selatan, which were selected with purposive cluster sampling. The production and market risk possibility and impact were measured with Value at Risk Method. The estimations showed that smallholders had a low risk possibility and impact, which partly stemmed from the enormously low threshold of both production and market risks. In fact, on average, smallholders' productivity is less than 20% of the potentials, and many schemed smallholders receive low prices due to their aged trees. This may be harmful to smallholding sustainability. Since VaR only considers risks from variations of production and price, a low threshold is not considered as a risk for sustainability. Therefore, further studies using different thresholds or approaches are required. From the policy implication point of view, to address such a situation, the Indonesian government needs to improve smallholdings' productivity and their composition of trees.

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Integrating Agricultural Risks Management Strategies in Selected EU Partner Countries: Syria, Tunisia, Turkey

Cited by 12 publications

References 22 publications

The Impact of Traditional Culture on Farmers’ Moral Hazard Behavior in Crop Production: Evidence from China

The Impact of Traditional Culture on Farmers’ Moral Hazard Behavior in Crop Production: Evidence from China

Agriculture Sector Risk Management / Žemės Ūkio Sektoriaus Rizikos Valdymas

Risk Analysis for Sustainability of Oil Palm Smallholdings

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