Enabling Productive butAsset-Poor Farmers to Succeed : A Risk Financing Framework

Gurenko, Eugene ; Mahul, Olivier

World Bank, Washington, D.C.

关键词: RISK MANAGEMENT;    AGRICULTURAL INSURANCE;    FARM INCOME;    CROP INSURANCE;    FINANCIAL INSTRUMENTS;   

DOI  :  10.1596/1813-9450-3211
RP-ID  :  WPS3211

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper examines how market-basedrisk financing instruments could enable asset-poor butproductive farmers exposed to production shocks to engage inriskier but higher-return agricultural activities. Thefinancing of these exogenous shocks is addressed in aconceptual framework based on an optimal allocation ofcapital where the farm is viewed as a business unit. Theapproach allows for (1) testing the business viability of aspecified crop by assessing the minimum business capitalrequired to ensure the continuity of the business after theoccurrence of an adverse production shock; and (2) designingan optimal risk financing program to finance the minimumcapital requirements using a combination of instruments(insurance, savings, and borrowing). The authors providenumerical and graphical examples to illustrate the relevanceof this financial approach to the specific issues ofagricultural risk management.