PROBLEMS OF RISK MANAGEMENT IN AGRICULTURAL PRODUCTION
Keywords:
agriculture, price risk, production risk, regulatory risk, insurance.Abstract
Agricultural production is characterised by permanent exposure to variabilities that result from seasonal temperature changes, droughts, floods, policies changes, etc. The aim of the paper is to determine risk exposures in agriculture and methods for risk management in a simplified and holistic way. Research results indicate that all risks can be grouped into regulatory, market and production. The methods of risk management depends on the type of risks. Having considered that risk management is not necessarily directed towards reduction of potential dangers but also towards taking advantage of possible profitable opportunities, understanding and successful application of different alternatives presented in the paper can facilitate the creation of farmers sustainable business success in the long run.
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References
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2. Baquet, A., Hambleton, R. and Jose, D. (1997), Introduction to Risk Management, US Department of Agriculture Risk Management Agency, Washington, DC.
3. Blank, Steven C. and McDonald, Jeffrey (1995), How California agricultural producers manage risk, California Agriculture 49(2): p. 9-12.
4. EC (2001), Risk Management Tools for EU Agriculture, with a special focus on insurance, Working document, European Commission, Agriculture Directorate-General, Brussels, January 2001.
5. FAO (2009), The Sate of Agricultural Commodity Markets: High food prices and the food crisis – experiences and lessons learned, Food and Agriculture Organization of the United Nations, Rome.
6. Global Risks (2010), A Global Risk Network Report, World Economic Forum Report, Geneva, January 2010.
7. Gramig, B., Barnett, B.J., Skees, J.R. and Black, J.R. (2006), Incentive compatibility in risk management of contagious livestock diseases, in S.R. Koontz, D.L. Hoag, D.D. Thilmany, J.W. Green, J.L. Grannis (eds.), The Economics of Livestock Disease Insurance: Concepts, Issues and International Case Studies, CABI Publishing, Cambridge.
8. Hamilton, R. (2009), Breeding Better Crops, Scientific American, New York, 19(2), p. 16-17.
9. Hardaker, J.B., Huirne, R.B.M., Anderson, J.R. and Lien, G. (2004), Coping with Risk in Agriculture. Wallingford, CAB International.
10. Hirsch, B. and Nell, M. (2008), The Law & Economics of Epidemic Livestock Disease Risk Management, in Eger, T., Bigus, J., Ott, C. and von Wangenheim, G. (eds.): Internationalization of the Law and its Economic Analysis, Wiesbaden, Gabler, p. 239-249.
11. Huirne, R., Meuwissen, M. and Asseldonk, M.V. (2007), Importance of WholeFarm risk Management in Agriculture, in: Weintraub, A., Romero, C., Bjorndal, T., Epstein, R. and Miranda, J. (eds.) Postponement Strategies in Supply Chain Management, Springer, New York, p. 3-15.
12. ISO/IEC Guide 73:2002 Risk management. Vocabulary. Guidelines for use in standards, International Organization for Standardization, Geneva, 2002.
13. McCloskey, D. N. (1976), English Open Fields as Behavior Towards Risk, Research in Economic History, 1(fall): p. 124-170.
14. Meuwissen, M.P.M., Huirne, R.B.M. and Hardaker, J.B. (2001), Risk and risk management: an empirical analysis of Dutch livestock farmers, Livestock Production Science, 69(1): p. 43-53.
15. Musser, W.N. & Patrick, G.F. (2002), How Much Does Risk Really Matter to Farmers?, in Just, R.E. & Pope, R.D. (eds): A Comprehensive Assessment of the Role of Risk in U.S. Agriculture, Norwell, MA, Kluwer Academic Publishers, p. 537-557.
16. OECD (2009), Managing Risk in Agriculture: A Hollistic Aproach, OECD Publishing, Paris.
17. Patrick, G.F., Peiter, A.J., Knight, T.O., Coble, K.H. and Baquet, A.E. (2007), Hog producers risk management attitudes and desire for additional risk management education, Journal of Agricultural and Applied Economics 39(3): p. 671-687.
18. Raulston, J.M., Richardson, J:W., Outlaw, J.L. and Knapek, G.M. (2010), Does Crop Insurance Reduce the Need for Cash Reserves in Savings Accounts?, paper presented at the SAEA Annual Meeting, Orlando, FL, February 6-9, p. 11
19. Robison, L. & Barry, P. (1987), The Competitive Firms Response to Risk, New York, MacMillan.
20. Shaik, S., Barnett, B.J., Coble, K.H., Miller, J.C. and Hanson, T. (2006), Insurability conditions and livestock disease insurance, in S.R. Koontz, D.L. Hoag, D.D. Thilmany, J.W. Green, J.L. Grannis (eds.), The Economics of Livestock Disease Insurance: Concepts, Issues and International Case Studies, CABI Publishing, Cambridge.
21. Skees, J., Hazell, P. and Miranda, M. (1999), New Approaches to Crop Yield Insurance in Developing Countries, EPTD Discussion Paper 55, International Food Policy Research Institute, Washington, D.C.
22. USDA (1993), Farmers Use of Marketing and Production Contracts, Economic Research Service, US Department of Agriculture, Washington.
23. ДДОР (1996), Приручник за праксу у осигурању и реосигурању, ДДОР Нови Сад.
24. Његомир, В. (2009), Традиционални и алтернативни трансфери ризика као облици управљања ризиком осигурања, Докторска дисертација, Факултет техничких наука, Нови Сад.
25. Пејановић, Р., Тица, Н. (2005), Транзиција и агропривреда, монографија, Пољопривредни факултет, Нови Сад.
26. Родић, В., Перић, Л. и Ђукић-Стојчић, М. (2009), Процена утицаја примене ЕУ регулативе на економске резултате производње конзумних јаја на малим породичним фармама, Савремена пољопривреда, Вол. 58, бр. 1-2, стр. 67-72.
27. Самјуелсон, П.А. и Нордхаус, В.Д. (2009), Економија, Мате, Београд.
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Published
2011-03-31
How to Cite
Pejanović, R., & NJegomir, V. (2011). PROBLEMS OF RISK MANAGEMENT IN AGRICULTURAL PRODUCTION. Economics of Agriculture, 58(1), 91–103. Retrieved from https://ea.bg.ac.rs/index.php/EA/article/view/863
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Professional paper
