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Coping with Crisis Risk in European Agriculture

Author

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  • Miranda P.M. Meuwissen
  • Marcel A.P.M. Van Asseldonk
  • Ruud B.M. Huirne

Abstract

Coping with Crisis Risk in European Agriculture This article summarizes the major findings of an international workshop on coping with crisis risk in European agriculture. The workshop took place as part of an EU sixth framework project entitled: Income stabilisation: Design and economic impact of risk management tools for European agriculture. The meeting focused on ex ante crisis risk, which is defined as a foreseeable and predictable risk that potentially hits many farms at the same time. More specifically, the workshop focused on technology risks ‐ such as food safety and livestock epidemic risks ‐ and weather risks. State of the art discussions pointed towards little attention being paid to crisis risk management in EU agriculture and the incompleteness of risk management instruments available. Proposed solutions, although not entirely agreed upon by all workshop participants, envision some form of public–private partnership. For technology risks, which are rather‘manageable’ by individual farmers, partnerships are recommended to be a mix of regulation, risk mitigation and non‐subsidised market instruments with a clear focus on incentives for risk prevention. For weather risks, these partnerships include financial aspects whereby governments offer free cover for the catastrophic part of losses. The Income Stabilisation project will integrate workshop recommendations with wider research project activities and will eventually advise on prospective risk management instruments for various farm types and regions throughout the European Union. Faire face au risque de crise dans l'agriculture européenne Cet article résume les principales conclusions d'un atelier international sur les manières de faire face aux risques de crise dans l'agriculture européenne. La réunion s'insérait dans un projet du sixième PCRD de l'UE intitulé« stabilisation du revenu : conception et impact économique d'instruments de gestion des risques pour l'agriculture européenne ». Les débats se sont centrés sur les crises ex ante, c'est‐à‐dire sur les risques prévisibles et prédictibles, susceptibles d'atteindre de nombreux agriculteurs à la fois. Plus précisément, il était question des risques technologiques, comme ceux qui concernent la salubrité des aliments, ou les épidémies du bétail, ainsi que des risques climatiques. Les discussions sur l'état de l'art ont mis en évidence la faible attention portée dans l'UE aux problèmes des la gestion des risques, ainsi que l'incomplétude des instruments de gestion des risques disponibles. Les solutions envisagées, quoique ne faisant pas l'unanimité des participants, tournaient autour de formes de partenariat public/privé. En ce qui concerne les risques technologiques, qui sont gérables par les agriculteurs, de tels partenariats pourraient s'organiser avec des mélanges de règlements, de mesures pour diminuer les risques, et d'instruments de marché non subventionnés centrés sur les incitations à la prévention. Pour les risques climatiques, les partenariats impliquent les aspects financiers des actions gouvernementales pour procurer une couverture gratuite de la partie catastrophique des risques. Le projet « stabilisation des revenus » intégrera les recommandations du projet dans un cadre plus général, et conduira à des propositions pour une vision prospective des instruments de gestion des risques dans les différents types d'exploitation, et les différentes régions de l'Union européenne. Mit dem Krisenrisiko in der europäischen Landwirtschaft umgehen Dieser Beitrag fasst die bedeutendsten Ergebnisse eines internationalen Workshops zum Umgang mit dem Krisenrisiko in der europäischen Landwirtschaft zusammen. Der Workshop war Teil eines Projekts des sechsten Rahmenprogramms der EU mit dem Titel “Einkommensstabilisierung: Entwicklung und wirtschaftliche Auswirkungen von Werkzeugen zum Risikomanagement für die europäische Landwirtschaft”. Bei dem Meeting ging es um das ex ante Krisenrisiko, worunter ein vorhersehbares und ‐sagbares Risiko zu verstehen ist, welches möglicherweise zahlreiche landwirtschaftliche Betriebe zur gleichen Zeit betreffen kann. Der Workshop konzentrierte sich ganz besonders auf technologiebedingte Risiken, wie z.B. Nahrungsmittelsicherheitsrisiken und Risiken von Tierseuchen, sowie auf wetterbedingte Risiken. Die Diskussionen auf dem neusten Wissensstand deuteten darauf hin, dass dem Management von Krisenrisiken in der europäischen Landwirtschaft und der Unvollständigkeit der verfügbaren Instrumente für das Risikomanagement nur wenig Aufmerksamkeit zukommen. Die vorgeschlagenen Lösungen sehen eine Form von öffentlich‐privater Partnerschaft vor, obgleich dies nicht die Zustimmung aller Workshop‐Teilnehmer fand. Hinsichtlich der technologiebedingten Risiken, welche eher von den einzelnen Landwirten in den Griff zu bekommen sind, werden Partnerschaften basierend auf einer Mischung aus Regulierung, Risikominderung und nicht‐subventionierten Marktinstrumenten empfohlen, bei der die Anreize zur Risikoprävention klar im Vordergrund stehen. Hinsichtlich der wetterbedingten Risiken beinhalten diese Partnerschaften finanzielle Aspekte, wonach der Staat kostenlosen Versicherungsschutz bei durch Katastrophen verursachten Schäden anbietet. Das Projekt zur Einkommensstabilisierung wird die Empfehlungen des Workshops in die Aktivitäten weiterführender Forschungsprojekte integrieren und schließlich im Hinblick auf die in Aussicht stehenden Instrumente für das Risikomanagement für verschiedene Betriebstypen und Regionen in der gesamten Europäischen Union beratend tätig sein.

Suggested Citation

  • Miranda P.M. Meuwissen & Marcel A.P.M. Van Asseldonk & Ruud B.M. Huirne, 2006. "Coping with Crisis Risk in European Agriculture," EuroChoices, The Agricultural Economics Society, vol. 5(3), pages 34-39, December.
  • Handle: RePEc:bla:eurcho:v:5:y:2006:i:3:p:34-39
    DOI: 10.1111/j.1746-692X.2006.00042.x
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    References listed on IDEAS

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    1. Hardaker, J. Brian & Lien, Gudbrand D., 2005. "Towards some principles of good practice for decision analysis in agriculture," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137925, Australian Agricultural and Resource Economics Society.
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