Crop Insurance, Land Productivity and the Environment: A Way forward to a Better Understanding

Agnieszka Kurdyś-Kujawska, Agnieszka Sompolska-Rzechuła, Joanna Pawłowska-Tyszko and Michał Soliwoda
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Agnieszka Kurdyś-Kujawska: Faculty of Economics, Department of Finance, Koszalin University of Technology, Kwiatkowskiego 6E, 75-343 Koszalin, Poland
Agnieszka Sompolska-Rzechuła: Faculty of Economics, Department of Applied Mathematics in Economics, West Pomerania University of Technology Szczecin, Janickiego 31, 71-270 Szczecin, Poland
Joanna Pawłowska-Tyszko: Director’s Plenipotentiary for FADN, Institute of Agricultural and Food Economics, National Research Institute, Świętokrzyska 20, 00-002 Warsaw, Poland
Michał Soliwoda: Department of Finance and Risk Management, Institute of Agricultural and Food Economics, National Research Institute, Świętokrzyska 20, 00-002 Warsaw, Poland

Agriculture, 2021, vol. 11, issue 11, 1-17

Abstract: Providing farmers with effective risk management tools and increasing the productivity of factors of production, while limiting negative effects on the environment, is an important challenge for the current EU agricultural policy. The aim of this research is to identify and evaluate the relationship between crop insurance and land productivity in the context of environmental effects. The study covered farms with crop insurance participating in the Polish FADN system. The article uses the TOPSIS method of organizing objects. We classify farms in terms of land productivity and examine the relationship between these results and the value of insurance coverage. In our conceptual and empirical framework, we recognize that there is a mutual relationship between crop insurance, land productivity and the environment. Our empirical results show that the level of insurance coverage may support the increase in land productivity, indirectly affecting the environment. Farms with the highest productivity level were characterized by an average value of insurance that was double that compared to farms with the lowest productivity level.

Keywords: crop insurance; land productivity; environment; TOPSIS method; Poland (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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