Agricultural Risk Management and (Crop) Insurance

Luc Nijs

Chapter 4 in The Handbook of Global Agricultural Markets, 2014, pp 91-141 from Palgrave Macmillan

Abstract: Abstract Risk management in agriculture is important on several grounds: even if reducing farming risk does not always improve farmers’ welfare, failure to manage risks has direct repercussions on farmers’ incomes, market stability, and potentially food security. The two main risks faced by farmers — yield volatility and price volatility — are expected to rise due to changing weather patterns and tightening demand/supply fundamentals. Further, particular features such as the Common Agricultural Policy (CAP) of the European Union has been undergoing reforms that have significantly reduced the extent of market interventions. Tighter budgets, environmental factors, and trade considerations have resulted in an increased market orientation of the CAP. All in all, as market effects are gradually introduced, more of the actual risk will be in the hands of farmers/investors. This chapter therefore needs to be read in conjunction with the chapter on agricultural financial markets.

Keywords: Future Market; Future Price; Common Agricultural Policy; Future Contract; Strike Price (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-30234-2_4

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137302342

DOI: 10.1057/9781137302342_4

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().