More insurance subsidies for European farmers – is it needed?

In addition to traditional sources of uncertainties, such as market price volatility and animal and plant health-related risks, the impacts of climate change have recently become a major concern in the agricultural sector throughout the world. Insurance has been commonly proposed as a key instrument in farm risk management, and agricultural insurance schemes have become more widespread both in developed and developing countries. We conducted a case study in the UK to investigate farmers’ risk perception and willingness to pay for crop insurance by using contingent valuation method (CVM). Similarly to the experience from developing countries, we found that farmers are less willing to pay for insurance, however they do take actions to reduce their risks. While these results suggest that the provision of premium subsidies to European farmers can be justified; in order to avoid counter-productive policy outcomes, one may consider the introduction of a risk-based approach in agricultural risk management.


Issue Date:
2015-12
Publication Type:
Journal Article
DOI and Other Identifiers:
ISSN 1789-7874 (Other)
DOI: 10.19041/APSTRACT/2015/4/4 (Other)
PURL Identifier:
http://purl.umn.edu/226119
Published in:
APSTRACT: Applied Studies in Agribusiness and Commerce, Volume 09, Number 4
Page range:
33-38
Total Pages:
6
JEL Codes:
Q14
Series Statement:
9
4




 Record created 2017-04-01, last modified 2017-08-28

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