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Regional Yield Insurance for Arable Crops in EU-27

Maria Bielza, Remo Catenaro, Costanza G. Conte and Francisco J. Gallego

No 43690, 2008 International Congress, August 26-29, 2008, Ghent, Belgium from European Association of Agricultural Economists

Abstract: The paper looks at a hypothetical area yield insurance at the level of Farm Accountancy Data Network (FADN) regions: Regional Yield Insurance (RYI). Total premium cost is evaluated for each MS and EU-27 assuming that the whole crop surface for each single arable crop is insured. In order to check the efficiency of RYI for smoothing the farmers’ income, we calculate the farmers’ yield variability from a sample of individual farm FADN income data for two scenarios. The first scenario is the current one without RYI, and the second one is with RYI under the hypothesis of 100% market penetration. These analyses enable us to evaluate the potential of RYI as a farmers’ income stabilizer. Moreover, they provide an insight of the potential of other kinds of index products in the heterogeneous European landscape. Results show that the risk reduction capacity of RYI is not very high for the case analyzed (wheat). However, there are some exceptions where the risk can be significantly reduced.

Keywords: Agricultural Finance; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 17
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae08:43690

DOI: 10.22004/ag.econ.43690

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