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The Debate on Public Support to Crop Insurance

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  • Carlo Cafiero

Abstract

Within the context of the debate on agricultural income stabilisation, many suggest the need for direct or indirect public support to crop insurance. This arti-cle questions the value of such a form of intervention. The potential benefits of public support to crop insurance depend upon the answers to the following ques-tions: (i) Is it true that agricultural incomes’ variability has increased in the re-cent years, following the reform of agricultural policies after Gatt and Wto agreements? (ii) Is it really true that agricultural incomes volatility, even if it is a problem, cannot be effectively managed with private instruments? (iii) Even if there is the need for public intervention, under what conditions a subsidy to insur-ance premiums is the best solution? Recent literature has yet to provide convinc-ing answers to these questions. In this article, by reviewing the available evidence after many years of public support to crop insurance in several western countries, doubts are raised on the effective value of such an instrument.

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Bibliographic Info

Article provided by Associazione Rossi Doria in its journal QA.

Volume (Year): (2003)
Issue (Month): 3 (December)
Pages:

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Handle: RePEc:rar:journl:0147

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Related research

Keywords: Crop Insurance; Agricultural Policy; Risk Management; Income Stabilisation;

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