• 유통과학연구
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• 제14권11호
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• pp.29-36
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• 2016

Purpose - Intense debate is occurring over support for farmers in Korea, specifically on the justification, policy design, and equality issues of the farm support programs. Given this debate, a new type of farm program in the US, a market flexible revenue program(the Average Crop Revenue Election, ACRE), is examined. ACRE stands in contrast to traditional programs that tie payments to price and have parameters that are fixed or change only infrequently. Research design, data, and methodology - Based on the ACRE program formulas, the potential payments are estimated by crop year, program crop and geographical area using the FSA acreage and payment rate data. Results - If all US farm program acres were in ACRE over the 2009-2013 crop years, payments would have totaled $7.95 billion or 1.2 percent of average market receipts for US crops. Enacting ACRE as a revenue program instead of a similarly-structured price-only program increased payments by $1.75 billion or 28 percent. Conclusions - Potential payments by ACRE largely reflected the distribution of the value of production across the program crops eligible for ACRE as well as across state geographical areas. If program parameters can be made acceptable and if data availability issues can be addressed, market flexible revenue programs offer a farm policy option that can address many of the concerns that have arisen over farm policy in Korea.

• 한국유기농업학회지
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• 제24권3호
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• pp.369-383
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• 2016

Crop yield insurance program in Korea has rapidly grown not only in quantity but in quality for 15 years since it was introduced in 2001. Despite growth of Crop insurance, performance evaluation for crop yield insurance has not fully been evaluated at the farm, consumer and national level. The purpose of this study is to conduct the performance evaluation for crop yield insurance through estimating the effects of farm revenue stabilization and social welfare increase with three popular insurance items: apple, pear and sweet persimmon. Based on the analysis of social welfare effect, cost-benefit analysis of operating crop yield insurance was conducted at the national level. We found that crop yield insurance stabilizes farm revenue based on the estimated four risk indicators: Coefficient of Variation, Value at Risk, Certainty Equivalence, and Risk Premium. The result of cost-benefit analysis shows that crop yield insurance increases social net benefit by 44.1 billion won for the three items. As a result, crop yield insurance program has contributed remarkably on social welfare as well as farm management and its role will be more important in the future.

• 한국유기농업학회지
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• 제28권4호
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• pp.459-475
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• 2020

This study analyzes weather derivatives as an alternative risk management tool to stabilize farm revenue to complement the existing crop insurance program which suffers from asymmetric information problems such as adverse selection, moral hazard, and verifiability. We estimated apple yield functions to observe the relationship between yields and weather indices such as temperature and precipitation. Based on the estimated yield functions we designed weather futures and options products underlying temperature and precipitation, and calculated the prices of futures and options by two different approaches, historical distribution and Monte Carlo simulation. We found that weather futures and options stabilize farm revenue based on the estimated four risk indicators: Coefficient of Variation, Value at Risk, Certainty Equivalence, and Risk Premium. As a result, weather derivatives could be considered as a potential farm risk management tool through studying more in legal and institutional strategies and developing various derivatives products.

• Agribusiness and Information Management
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• 제11권1호
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• pp.27-39
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• 2019

Agricultural risks are exacerbated by a variety of factors ranging from climatevariability and change, frequent natural disasters, uncertainties in yields and prices, weakrural infrastructure, imperfect markets and lack of financial services including limited spanand design of risk mitigation instruments such as credit and insurance. Indian agriculture has little more than half (53%) of its area still rainfed and this makes it highly sensitive to vagaries of climate causing unstable output. Besides adverse climatic factors, there are man-made disasters such as fire, sale of spurious seeds, adulteration of pesticides and fertilizers etc., and all these severely affect farmers through loss in production and farm income, and are beyond the control of farmers. Hence, crop insurance' is considered to be the promising tool to insulate the farmers from risks faced by them and to sustain them in the agri-business. This paper critically evaluates the performance of recent crop insurance scheme viz., Pradhan Mantri Fasal Bhima Yojana (PMFBY) and its comparative performance with earlier agricultural insurance schemes implemented in the country. It is heartening that, the comparative performance of PMFBY with earlier schemes revealed that, the Government has definitely taken a leap forward in covering more number of farmers and bringing more area under crop insurance with the execution of this new scheme and on this front, it deserves the appreciation in fulfilling the objective for bringing more number of farmers under insurance cover. The use of mobile based technology, reduced number of Crop Cutting Experiments (CCEs) and smart CCEs, digitization of land record and linking them to farmers' account for faster assessment/settlement of claims are some of the steps that contributed for effective implementation of this new crop insurance scheme. However, inadequate claim payments, errors in loss/yield assessment, delayed claim payment, no direct linkage between insurance companies and farmers are the major shortcomings of this scheme. This calls for revamping the crop insurance program in India from time to time in tune with the dynamic changes in climatic factors on one hand and to provide a safety-net for farmers to mitigate losses arising from climatic shocks on the other. The future research avenues include: insuring the revenue of the farmer (Price × Yield) as in USA and more and more tenant farmers should be brought under insurance by doling out discounts for group coverage of farmers like in Philippines where 20 per cent discount in premium is given for a group of 5-10 farmers, 30 per cent for a group of 10-20 and 40 per cent for a group of >20 farmers.

• 한국수자원학회:학술대회논문집
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• 한국수자원학회 2011년도 학술발표회
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• pp.13-13
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• 2011

The Rio Grande Compact Commission, in collaboration with local water management entities, water users and universities established a three state Rio Grande The Rio Grande Compact Commission, in collaboration with local water management entities, water users and universities established a three state Rio Grande Salinity Management Program. The objectives of the Rio Grande Project Salinity Management Program are to reduce salinity concentrations, loading, and salinity impacts in the Rio Grande basin for the 270 mile river reach from San Acacia, New Mexico to Fort Quitman, Texasto increase usable water supplies for agricultural, urban, and environmental purposes. The focus of this first phase of the program is the development of baseline salinity and hydrologic information and a preliminary assessment of the economic impacts of salinity. An assessment of the economic impacts of salinity in this region was conducted by scientists at Texas A&M University's AgriLife Research Center at El Paso and New Mexico State University. Economic damages attributable to high salinity of Rio Grandewater were estimated for residential, agricultural, municipal, and industrial uses. The major impact issues addressed were: who is being affected the types of economic impacts the magnitude of economic damages overall and by user category and identification of threshold-effect levels for different types of water use. Salinity concentrations in this 270 mile reach of the river typically range from 480 ppm to 1,200 ppm, but can exceed 3,000 ppm in the lower section of this reach. Economic impacts include reductions in agricultural yields, reduced water appliance life, equipment replacement costs, and increased water supply costs. This preliminary economic assessment indicates annual damages of $10.5 million from increased water salinity. Under current water uses, municipal and industrial uses account for 75% of the total estimated impacts. However, agricultural impacts are based on current crop pattern yield reductions and, salinity leaching requirements and do not account for the impacts of reduced revenue from having to grow salinity tolerant, lower value crops. Actual damages are anticipated to be significantly higher with the inclusion of these additional agricultural impacts plus the future impacts from the growing population in the region. A more comprehensive economic analysis is planned for the second phase of this program. Results of the economic analysis are being used to determine the feasiblity of salinity control alternatives and what salinity reduction control measures will be pursued.