1887

OECD Food, Agriculture and Fisheries Papers

NB. No. 1 to No. 58 were released under the previous series title OECD Food, Agriculture and Fisheries Working Papers.

English

Design principles for agricultural risk management policies

Government support for agricultural risk management tools has grown substantially over the past two decades. While these tools can play a role in strengthening farm-level resilience by helping farmers to cope with the financial impact of adverse events, they also modify farmers’ incentives to invest in risk-reducing measures and market tools. Policy design is critical to maximise effectiveness while minimising unintended consequences. This report reviews the accumulated experience on four types of publicly-supported agricultural risk management tools (ex post disaster aid, agricultural insurance, income stabilisation schemes and tax and savings measures). It suggests some basic principles on how countries can improve the design of their agricultural risk management policies, using a holistic approach and focusing on market failures. The report also highlights the need for more transparency on basic programme data, and for periodic public evaluation of existing programmes.

English

Keywords: Agricultural Insurance, Disaster aid, Resilience
JEL: G22: Financial Economics / Financial Institutions and Services / Insurance; Insurance Companies; Actuarial Studies; G32: Financial Economics / Corporate Finance and Governance / Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill; Q18: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Agriculture / Agricultural Policy; Food Policy; Q54: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Climate; Natural Disasters and Their Management; Global Warming; H84: Public Economics / Miscellaneous Issues / Disaster Aid
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