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.
Table of contents:
Executive Summary Chapter 1. Introduction Chapter 2. Risk Management in Agriculture: a Holistic Conceptual Framework -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 Chapter 3. An Overview of Risk-Related Policy Measures -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 Chapter 4. An Assessment of Risk Exposure in Agriculture Based on a Review of the Literature -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