A New Tool for Covering Risk in Agriculture: The Revenue Insurance Policy
Over the last years, the agricultural sector has faced increasing risks related not only to production activities, but also to climate adversity and a higher frequency of extreme events. These factors, combined with increased price volatility in the markets, have caused greater exposure to risk for...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2021-07-01
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| Series: | Risks |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2227-9091/9/7/131 |
| _version_ | 1797526110170251264 |
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| author | Angelo Frascarelli Simone Del Sarto Giada Mastandrea |
| author_facet | Angelo Frascarelli Simone Del Sarto Giada Mastandrea |
| author_sort | Angelo Frascarelli |
| collection | DOAJ |
| description | Over the last years, the agricultural sector has faced increasing risks related not only to production activities, but also to climate adversity and a higher frequency of extreme events. These factors, combined with increased price volatility in the markets, have caused greater exposure to risk for farmers. For this reason, risk management in agriculture has taken on an important role within the Common Agricultural Policy. However, in recent years, gradual disaffection of farmers, low penetration of insurance in the arable sector, and a greater need for insurance coverage against market risks have characterised the subsidised risk management system. For all these reasons, starting in 2017, the National Agricultural Insurance Plan has provided new possibilities for covering risks. This paper aims to contribute to the debate on risk management linked to the revenue insurance policy recently adopted in Italy. Using data from the Italian Farm Accountancy Data Network, we simulate the application of the revenue insurance policy with a sample of Italian farms operating in the common and durum wheat sectors. The main findings show that the revenue insurance policy stipulation is, overall, sustainable for both farms and insurance companies. |
| first_indexed | 2024-03-10T09:24:34Z |
| format | Article |
| id | doaj.art-41cb236c06c74cecb2410704e25c2401 |
| institution | Directory Open Access Journal |
| issn | 2227-9091 |
| language | English |
| last_indexed | 2024-03-10T09:24:34Z |
| publishDate | 2021-07-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Risks |
| spelling | doaj.art-41cb236c06c74cecb2410704e25c24012023-11-22T04:53:32ZengMDPI AGRisks2227-90912021-07-019713110.3390/risks9070131A New Tool for Covering Risk in Agriculture: The Revenue Insurance PolicyAngelo Frascarelli0Simone Del Sarto1Giada Mastandrea2Department of Agricultural, Food and Environmental Sciences, University of Perugia, 06121 Perugia, ItalyDepartment of Statistics, Computer Science, Applications “G. Parenti”, University of Florence, 50134 Florence, ItalyDepartment of Agricultural, Food and Environmental Sciences, University of Perugia, 06121 Perugia, ItalyOver the last years, the agricultural sector has faced increasing risks related not only to production activities, but also to climate adversity and a higher frequency of extreme events. These factors, combined with increased price volatility in the markets, have caused greater exposure to risk for farmers. For this reason, risk management in agriculture has taken on an important role within the Common Agricultural Policy. However, in recent years, gradual disaffection of farmers, low penetration of insurance in the arable sector, and a greater need for insurance coverage against market risks have characterised the subsidised risk management system. For all these reasons, starting in 2017, the National Agricultural Insurance Plan has provided new possibilities for covering risks. This paper aims to contribute to the debate on risk management linked to the revenue insurance policy recently adopted in Italy. Using data from the Italian Farm Accountancy Data Network, we simulate the application of the revenue insurance policy with a sample of Italian farms operating in the common and durum wheat sectors. The main findings show that the revenue insurance policy stipulation is, overall, sustainable for both farms and insurance companies.https://www.mdpi.com/2227-9091/9/7/131risk management systemrevenue insurance policycommon agricultural policyFarm Accountancy Data Network |
| spellingShingle | Angelo Frascarelli Simone Del Sarto Giada Mastandrea A New Tool for Covering Risk in Agriculture: The Revenue Insurance Policy Risks risk management system revenue insurance policy common agricultural policy Farm Accountancy Data Network |
| title | A New Tool for Covering Risk in Agriculture: The Revenue Insurance Policy |
| title_full | A New Tool for Covering Risk in Agriculture: The Revenue Insurance Policy |
| title_fullStr | A New Tool for Covering Risk in Agriculture: The Revenue Insurance Policy |
| title_full_unstemmed | A New Tool for Covering Risk in Agriculture: The Revenue Insurance Policy |
| title_short | A New Tool for Covering Risk in Agriculture: The Revenue Insurance Policy |
| title_sort | new tool for covering risk in agriculture the revenue insurance policy |
| topic | risk management system revenue insurance policy common agricultural policy Farm Accountancy Data Network |
| url | https://www.mdpi.com/2227-9091/9/7/131 |
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