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Risk Management in Agriculture in Canada

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  • Jesús Antón
  • Shingo Kimura
  • Roger Martini

Abstract

This report analyses the agricultural risk management system in Canada, applying a holistic approach that considers the interactions between all sources of risk, farmers‘ strategies and policies. The policy analysis is structured around three layers of risk that require a differentiated policy response: normal (frequent) risks that should be retained by the farmer, marketable intermediate risks that can be transferred through market tools, and catastrophic risk that requires government assistance. The main policy issue in this report is the definition of the boundaries of these different layers. In Canada the system is overcrowded with policies and unable to signal risk layers in which farmers should take their own responsibility of management. Policies include AgriInvest, AgriInsurance, AgriStability, AgriRecovery and ad hoc measures. The analysis of AgriStability provides insights about the economics of agricultural income stabilization policies.

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File URL: http://dx.doi.org/10.1787/5kgj0d6189wg-en
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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Food, Agriculture and Fisheries Papers with number 40.

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Date of creation: 10 Feb 2011
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Handle: RePEc:oec:agraaa:40-en

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Related research

Keywords: insurance; risk-management; agricultural policy; montecarlo simulations; catastrophic risk income stabilization; policy targeting;

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Cited by:
  1. Liesivaara, Petri & Myyra, Sami & Jaakkola, Antti, 2012. "Feasibility of the Income Stabilisation Tool in Finland," 123rd Seminar, February 23-24, 2012, Dublin, Ireland, European Association of Agricultural Economists 122537, European Association of Agricultural Economists.
  2. Kimura, Shingo & Anton, Jesus & Cattaneo, Andrea, 2012. "Effective Risk Management Policy choices under Climate Change: An Application to Saskatchewan Crop Sector," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil, International Association of Agricultural Economists 126736, International Association of Agricultural Economists.
  3. Pigeon, Mathieu & Frahan, Bruno Henry de & Denuit, Michel, 2012. "Actuarial evaluation of the EU proposed farm income stabilisation tool," 123rd Seminar, February 23-24, 2012, Dublin, Ireland, European Association of Agricultural Economists 122485, European Association of Agricultural Economists.
  4. Poon, Kenneth, 2013. "Risky Business: Factors Affecting Participation Rate of AgriStability," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C., Agricultural and Applied Economics Association 150978, Agricultural and Applied Economics Association.

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