AgriStability with Catastrophic Price Risk for Cow‐Calf Producers

Schaufele, Brandon; Unterschultz, James R.; Nilsson, Tomas

doi:10.1111/j.1744-7976.2010.01182.x

Cited by 15 publications

(18 citation statements)

References 16 publications

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“…3 Notable exceptions are Turvey et al (1995), Mussell and Martin (2005), Schaufele et al (2010), and Turvey (2012). 3 Notable exceptions are Turvey et al (1995), Mussell and Martin (2005), Schaufele et al (2010), and Turvey (2012).…”

Section: Introductionmentioning

confidence: 99%

“…Turvey et al (1995) examined the transfer efficiency of NISA type programs but did not address the different incentives with respect to input choice. Schaufele et al (2010) used a stochastic simulation model and capital budgeting approach to evaluate AgriStability for cow-calf producers in terms of its ability to stabilize and increase certainty equivalent wealth. Schaufele et al (2010) used a stochastic simulation model and capital budgeting approach to evaluate AgriStability for cow-calf producers in terms of its ability to stabilize and increase certainty equivalent wealth.…”

Section: Introductionmentioning

confidence: 99%

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Transfer Efficiency Analysis of Margin‐Based Programs

Rude

Ker

2013

Canadian J Agri Economics

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AgriStability, Canada's major farm support and business risk management program, has been in place since 2007. As with most agricultural insurance programs, AgriStability creates opposing incentives where moral hazard and misallocation effects discourage production while the risk reduction effects encourage production. We investigate the relative size of these effects to determine both the degree to which production is distorted and the percentage of government transfer that remains with the producer. Our results indicate mild but differential effects across crops. We find roughly 45% of program payments remains with primary producers. These findings are of particular interest because of their World Trade Organization implications.Agri-stabilité, le plus important programme de soutien et de gestion des risques de l'entreprise (GRE) au Canada, est en place depuis 2007. Agri-stabilité, comme la plupart des programmes de soutien, crée des incitatifs opposés où le risque moral et une mauvaise allocation des intrants découragent la production tandis qu'une réduction des risques la stimule. Dans la présenteétude, nous avons examiné l'importance relative de ceséléments afin de déterminerà la fois le degré de distorsion de la production et le pourcentage des paiements de transfert qui profite au producteur. Les résultats de notreétude indiquent des effets modérés mais différentiels, et ce, toutes récoltes confondues. Ils indiquent aussi que près de 45 p. 100 des paiements de transfert sont versésà des producteurs primaires. Ces résultats sont particulièrement intéressants en raison de l'analyse qu'en fera l'OMC.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Transfer Efficiency Analysis of Margin‐Based Programs

Rude

Ker

2013

Canadian J Agri Economics

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“…Examples of peer‐reviewed literature include Schaufele et al. (), Rude and Ker (), and Vercammen (). Schaufele et al.…”

Section: Introductionmentioning

confidence: 99%

“…Schaufele et al. () consider the performance of AgriStability under normal versus catastrophic risks using a simulation model. Rude and Ker () analyzed the transfer efficiency of margin‐based BRM using a general equilibrium model.…”

Section: Introductionmentioning

confidence: 99%

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Canadian Business Risk Management: Private Firms, Crown Corporations, and Public Institutions

Ker

Barnett

Jacques

et al. 2017

Canadian J Agri Economics

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This paper considers the current and possible institutions (programs, policies, participants, etc.) that govern public Business Risk Management (BRM) in Canada. This is an important policy topic for two reasons: BRM spending accounts for the vast majority of public monies funneled to Canadian agricultural producers and the upcoming Canadian Agricultural Partnership includes a mandated BRM review and thus presents an opportunity to change these institutions in meaningful ways. We pay particular attention to the rhetoric surrounding greater involvement of private insurance, the lack of rhetoric regarding the use of crown corporations, and issues of subsidization. We conclude with policy recommendations favoring commodity‐specific revenue versus whole‐farm net margin insurance, a possible reduction in subsidy levels, and a call to reconsider the role of crown corporations. We also make programming recommendations regarding the discontinued use of private reinsurance, a reduction in the level of program reserves, and greater transparency. Ce document examine les institutions actuelles et potentielles (programmes, politiques, participants, etc.) qui gouvernent la gestion des risques d'entreprises (GRE) au Canada. Deux raisons rendent important ce sujet politique : les dépenses liées á la GRE totalisent la grande majorité des fonds publics accordés aux producteurs agricoles, et le futur cadre politique agricole offre l'occasion de modifier ces institutions de manière significative. Nous portons une attention particulière á la rhétorique entourant l'implication plus soutenue des assurances privées, á l'absence de rhétorique au sujet de l'utilisation de sociétés d'État, et aux enjeux de subvention. Nous concluons avec des recommandations politiques favorisant les assurances de revenus provenant spécifiquement de produits agricoles versus celles de la marge nette de l'exploitation globale, une potentielle réduction des niveaux de subvention, et un appel á tenir compte du rôle des sociétés d'État. Nous proposons aussi des recommandations de programmation concernant l'arrêt de l'utilisation des réassurances privées, une réduction du niveau des programmes de réserve, et une transparence accrue.

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Enterprise risk management in integrated crop-livestock systems: a method proposition

et al. 2018

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Integrated crop-livestock systems (ICLS) are currently promoted agricultural production systems that aim to use better resources through production integration and intensification. While this system reduces some risks, it adds complexity and new risks to businesses due to interdependence between the agricultural modules. To deal with these issues, integrated risk management is required to reduce the effects of risks and to take advantage of the opportunities of an ICLS. Generically, enterprise risk management (ERM) meets this need by proposing comprehensive and coherent risk management, instead of managing agricultural module risks individually. However, there is a need to customize the ERM approach to ICLS. Therefore, the current study aims to develop a method to manage risks for ICLS based on ERM, integrating the management of risks and aligning risk management with the strategic objectives. A literature review, a pilot study, interviews with experts, four case studies and 20 practitioners supported the method development and evaluation through three versions. As a result, the method identifies and relates risks through process mapping with a qualitative and quantitative analysis of their impacts, determines risk responses based on willingness to take risks, and helps identify processes to control, communicate and monitor the risks. The method also stimulates the implementation of ICLS in market-oriented farms, providing an approach to increase the chances of ICLS success. The main difference from previous research lies in the integrative management of multiple risks, the alignment of risks with strategy and the consideration that a risk might be considered an opportunity.

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AgriStability with Catastrophic Price Risk for Cow‐Calf Producers

Cited by 15 publications

References 16 publications

Transfer Efficiency Analysis of Margin‐Based Programs

Transfer Efficiency Analysis of Margin‐Based Programs

Canadian Business Risk Management: Private Firms, Crown Corporations, and Public Institutions

Enterprise risk management in integrated crop-livestock systems: a method proposition

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