Climate variability and agricultural production in argentina: the role of risk-transfer mechanisms

Marcos Gallacher (), Daniel Lema (), Laura Gastaldi () and Alejandro Galetto ()
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Marcos Gallacher: Universidad del CEMA
Daniel Lema: Universidad del CEMA; Instituto de Economía, INTA
Laura Gastaldi: EEA Rafaela, INTA
Alejandro Galetto: Universidad Austral, Rosario; UTN Facultad Regional Rafaela

Ensayos de Política Económica, 2016, vol. 2, issue 4, 11-38

Abstract: Research related to climate variability is particularly important in the current conditions faced by Argentine agriculture. These include (a) increased specialization in soybeans, with resulting reduced possibilities of risk-reduction through «portfolio» effects, (b) increased importance of crop production in argentine agriculture, (c) macroeconomic instability resulting in severe contraction and increased interest rates of credit and (d) upward trend in input use and per-acre production costs with consequent increase in break-even crop yields. This paper summarizes recent research related to production variability in Argentine agriculture, as well as the consequences of this variability on efficiency and resource allocation and presents an overview of strategies for coping with adverse climate events. We estimate willingness to pay (WTP) of agricultural producers for index-type insurance mechanisms, and outline the requirements for the development of a risk-transfer market for agricultural producers.

Keywords: weather-based index insurance; crop production; demand for insurance; Argentina (search for similar items in EconPapers)
JEL-codes: D82 G22 Q14 Q18 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:atw:epecon:v:2:y:2016:i:4:p:11-38

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