Suchergebnisse

AbstractCatastrophic or systemic risks are a major challenge for the farm and food system and rural communities. Private sector markets for sharing catastrophic risks are limited, but less so than in the past. This article presents a conceptual base for understanding why markets for sharing catastrophic risks may be incomplete and/or inefficient. Next, federal efforts to address catastrophic risk losses are reviewed. Finally, new capital market developments are presented and an alternative is introduced where the government would write risk options for specific perils.

AbstractMonte Carlo simulation is used to examine the effects of various financial relationships upon the growth rate in equity for farms with different levels of debt. A method is proposed for establishing financial relationships whereby comparable growth rates for farms with different debt will occur. The results demonstrate that financial relationships are important when comparing farms with different debt and when developing inferences about policy alternatives at the farm level.

Natural disasters can be extremely disruptive to farmers and to others whose incomes depend on a successful crop. Society can gain from more efficient sharing of crop and natural disaster risks. However, the costs associated with traditional agricultural risk programs have historically exceeded the gains from improved risk sharing. This paper explores government intervention in agricultural risk markets and discusses new approaches to risk sharing with limited government involvement. In particular, we build the case for introducing negotiable state-contingent contracts settled on area crop yield estimates or locally appropriate weather indices. These instruments could replace traditional crop insurance at a lower cost to government while meeting the risk management needs of a wider clientele. ; IFPRI3 ; EPTD ; Non-PR

Natural disasters can be extremely disruptive to farmers and to others whose incomes depend on a successful crop. Society can gain from more efficient sharing of crop and natural disaster risks. However, the costs associated with traditional agricultural risk programs have historically exceeded the gains from improved risk sharing. This paper explores government intervention in agricultural risk markets and discusses new approaches to risk sharing with limited government involvement. In particular, we build the case for introducing negotiable state-contingent contracts settled on area crop yield estimates or locally appropriate weather indices. These instruments could replace traditional crop insurance at a lower cost to government while meeting the risk management needs of a wider clientele. ; Non-PR ; IFPRI1 ; EPTD