Managing Risk in Agriculture

Policy Assessment and Design

image of Managing Risk in Agriculture

This book examines the implications of risk management for policy in agriculture.  Opening with a chapter on risk management principles and guidelines for policy design in agriculture, the book goes on to look at quantitative analysis of risk and then at policy in various countries.

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Comprehensive business risk management policies in Canada

Defining the boundaries between the different layers of risk (normal, market and catastrophic) is a major policy challenge analysed in this chapter. In Canada, the risk management system is overcrowded with policies and there is a lack of clarity concerning which risks fall under the management responsibility of farmers. Government policies include AgriInvest, AgriInsurance, AgriStability, AgriRecovery and ad hoc measures. The analysis of AgriStability in particular provides insights on the economics of agricultural income stabilisation policies. This policy analysis is part of a larger report structured around three layers of risk – normal, market and catastrophic – that require differentiated policy responses.

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