Yield risk and the potential for insurance in agriculture

Abstract

The introduction of yield insurance schemes for the farmers that would contribute to the diversification of risk transfer opportunities in the agricultural sector is under the consideration in Estonia. The paper focuses on agricultural insurance practices that could lead to the solutions for farmers. The aim is to study possible volume of yield insurance in Estonia. The development of agricultural insurance schemes is heterogeneous in different EU Member States and the characteristics of specific agricultural insurances for the crop sector vary from market-based single and combined risk insurances to the policy-type insurances. The analysis of Estonian data indicate that cereal yields and yield volatility differ across the Estonia regions, and the potential market volume for crop insurance is low.

The Relevance of Sectoral Clustering in Corporate Debt Policy: The Case Study of Slovak Enterprises

“…While the rural economy has generally been related to the primary sector, the relevance of the latter in terms of GDP and as a provider of employment in rural regions has been declining. In recent decades, the number of Estonian firms of the tertiary sector has exceeded that of primary sector enterprises (Nurmet et al 2012). The tertiary sector is one of the most significant forms of developed and developing economies (Alshehhi and Popp 2017) because of the proportion of the field of operation and production that it takes up, as well as the importance that it plays in generating employment and the GDP of the country.…”