Compensation Payments and Animal Disease: Incentivising Farmers Both to Undertake Costly On-farm Biosecurity and to Comply with Disease Reporting Requirements

Robert Fraser

No 236359, 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK from Agricultural Economics Society

Abstract: This paper examines the issue of compensation payments for farmers affected by an animal disease outbreak. Recent literature has questioned the scope for the widely used “single mechanism” of compensation payments to incentivise farmers both to undertake costly on-farm biosecurity and to comply with disease reporting requirements. This paper develops a simple theoretical model of the farmer’s decision environment in this situation and uses a numerical analysis to illustrate both the potential for a range of levels of compensation payments to achieve this dual incentivising, and how this range is affected by changes in the parameter values of the farmer’s decision environment. Particular attention is given to the problem of spatial variation among farmers in the baseline of likelihood of a disease outbreak, and the findings of the paper are used to suggest a policy solution to this problem.

Keywords: Agricultural and Food Policy; Farm Management (search for similar items in EconPapers)
Pages: 15
Date: 2016-04
New Economics Papers: this item is included in nep-agr
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/236359/files/Robert%20_Fraser%20upload.pdf (application/pdf)

Related works:
Journal Article: Compensation Payments and Animal Disease: Incentivising Farmers Both to Undertake Costly On-farm Biosecurity and to Comply with Disease Reporting Requirements (2018)
Working Paper: Compensation Payments and Animal Disease: Incentivising Farmers Both to Undertake Costly On-farm Biosecurity and to Comply with Disease Reporting Requirements (2016)
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:ags:aesc16:236359

DOI: 10.22004/ag.econ.236359

Access Statistics for this paper

More papers in 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK from Agricultural Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().