Government financed crop damage compensation (CDC) scheme is covering crop losses in Finland. The scheme is about to be abolished. Crop insurance scheme based on public–private partnership will be in place in 2016. In this study, we analysed how government expenditure will change due to the...

Recent literature shows that deviations from normal rainfall and temperature systematically increase the occurrence of human conflicts. We investigate whether land certification can offset the effect of climate anomalies on land use conflicts. We use a large panel dataset from farm-household...

Kahneman and Tversky’s Cumulative Prospect Theory (CPT) has proved to be better suited for representing risk preferences than von Neumann and Morgenstern’s Expected Utility Theory (EUT). We argue that neglecting this may explain to some extent why farmers do not contract crop insurance as...

In Finland, water conservation policy sets equal incentive regardless of the condition of the environment. Before any policy reform, it is vital to investigate landowners’ tendency for adoption. In this study we were particularly interested in examining the tendency for adoption if the soil...

The French government and private companies are currently working on a scheme to insure grassland production. Objectives of this study are first to analyse how grassland yield insurance would substitute to self insurance in suckler cow farms and with which effects on profit distribution, second...

The economic literature showed that remittances can replace missing credit and insurance markets. As a result, it is natural to expect that higher amounts of remittances will motivate agricultural farmers to engage in riskier activities. The present study aims to verify the latter hypothesis by...

Approach to agriculture risk management has extended in the EU and the possibilities of public support for yield risk management have increased. Crop insurance products are supported in EU’s Common Agricultural policy (CAP). The problem in policymaking is finding the balance between crop...

In 2012 Hungary introduced the two-pillar risk management system. The first pillar refers to an “all-risk” fund, where the participation of agricultural producers is obliged above a certain size. The second pillar is market based voluntary insurance with state-support scheme. Our research...

This paper presents the first empirical evidence on farm household risk balancing behavior, i.e., making strategic off-farm decisions in response to changes in expected business risk. Firstly, using survey data combined with Flemish FADN data, we construct a psychometric household risk balancing...

We investigated the economic attractiveness of different land uses and possible payments for carbon in rubber monoculture and agroforest, and biodiversity in agroforest under revenue uncertainty in Jambi, Indonesia. A multi-period programming with Monte Carlo simulation and Brownian motion were...