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Managing Risk in Agriculture: A Holistic Approach Product Image

Managing Risk in Agriculture: A Holistic Approach

  • Published: September 2009
  • 170 pages
  • OECD Publishing

The sources of risk in agriculture are numerous and diverse, ranging from events related to climate and weather conditions to animal diseases; from changes in agriculture commodities prices to changes in fertilizer and other input prices; and from financial uncertainties to policy and regulatory risks. Agricultural risks are not independent, but rather are linked both to each other and as part of a system that includes all available instruments, strategies and policies designed to manage risk. A holistic approach is thus necessary.

This book examines the current magnitude and characteristics of risk-related policies in agriculture and what is known about the quantitative size of agricultural risks. It looks at the on-farm, off-farm, and market instruments available to manage risk, and it explains how the holistic approach helps clarify the role of governments.

Executive Summary
<STRONG>Chapter 1. Introduction
Chapter 2. Risk Management in Agriculture: a Holistic Conceptual Framework
</STRONG>-A holistic framework for the analysis of agricultural risk management systems
-Sources of risk
-Risk management instruments and strategies
-The potential role of government
-A template to apply the holistic approach
-Annex 2A. Framing the economic analysis of risk
-Annex 2B. Price volatility and price stabilization
<STRONG>Chapter 3. An Overview of Risk-Related Policy Measures</STRONG>
-Which policy measures have a direct risk dimension?
-Risk-related policies in the PSE
-Risk-related policies in WTO notifications on domestic support commitments
-Other risk-related policies
<STRONG>Chapter 4. An Assessment of Risk Exposure in Agriculture Based on a Review of the Literature</STRONG>
-What is risk?
-Estimation of variability in price, yield and off-farm income
-Cause of variability in agriculture
-Producer risk perceptions and preferences
-Lessons learned on the magnitude and causal factors of agricultural risks

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