ECONOMIC AND LEGAL ASPECTS OF SUNFLOWER INSURANCE USING THE MODEL OF REGIONAL INDEX
DOI:
https://doi.org/10.5937/ekoPolj1801215MKeywords:
insurance, regional index, sunflower, damage assessment, moral hazard.Abstract
The application of index insurance in agriculture is becoming more and more popular in the last few years, especially in developed countries. Index insurance of crops and fruits is based on data related to a particular administrative unit or region. The regional index represents the average yield or average revenue in a region that is the basis for calculating the premium and insurance compensation. In the case of sunflower production, one of the most frequent crops in the region of Kula municipality, the authors show the methodology of applying the analysed insurance. The main advantage of this insurance model can be the facts that there is no need to estimate the damage, as well as a drastic reduction in morale-hazard. This insurance model can be a significant alternative to classical insurance and its implementation should result in an increase in the number of insured and insured areas. Firstly, it is necessary to remove the potential legal dilemmas about the implementation of this insurance model in Serbia and to define more precisely some legal institutions in this area.
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References
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26. www. http://webrzs.stat.gov.rs/WebSite/Public/ReportView.aspx
2. Bielza Maria, Stroblmair, J., & Gallego, J. (2007). Agricultural Risk Management in Europe. 101st EAAE Seminar "Management of Climate Risks in Agriculture", July 5-6, Berlin, 2007.
3. Calanca, P. (2007). Climate change and drought occurrence in the Alpine region: how severe are becoming the extremes? In: Global and Planetary Change, Vol. 57, No. 1-2, Elsevier, Atlanta, United States of America.
4. Carić, S., Vitez, M., Raičević, V., & Veselinović, J. (2011). Privredno pravo. Fakultet za ekonomiju i inženjerski menadžment, Novi Sad, Srbija.
5. Carter, M. R., Galarza, F., & Boucher, S. (2007). Underwriting Area-based Yield Insurance to Eliminate Risk Rationing and Crowd - in Credit Supply and Demand. International Conference on Rural Finance Research: Moving Results into Polices and Practice, 16-17, Rome.
6. Chambers, R. G., & Quiggin, J. (2002). Optimal Producer Behavior in the Presence of Area-Yield Crop Insurance. American Journal of Agricultural Economics, 84(2), 320-334.
7. Deng, X., Barnett, B. J., Hoogenboom, G., Yu, Y., & Garcia, A. (2008). Alternative Crop Insurance Indexes. Journal of Agricultural and Applied Economics, 40(1), 223-237.
8. Dismukes, R., Coble, K., Miller, C., & ODonoghue, E. (2013). The effects of area-based revenue protection on producers choices of farm-level revenue insurance, Agricultural and Applied Economics Association 2013 Annual Meeting, Washington, DC.
9. Ebneth, O.J. (2003). Mehrgefahrenversicherung als Risiko-Management-Instrument für die deutsche Landwirtschaft. Masterarbeit, Fakultät für Agrarwissenschaften, Göttingen
10.Fuhrer, J., Beniston, M., Fischelin, A., Frei, C., Goyette, S., Jasper, K., & Pfster, C. (2006). Climate risks and their impact on agriculture and forests in Switzerland. In: Climatic Change, Vol. 79, No. 1-2, Dordrecht, The Netherlands.
11. Halcrow, H. G. (1949). Actuarial Structures for Crop Insurance. Journal of Farm Economics, 31, 418-443.
12. Hirschauer, N., & Mußhoff, O. (2008). Risikomanagementinstrumente im Vergleich: Sollte man landwirtschaftliche Ernteversicherungen subventionieren? -Gute alte Argumente in einem neuen Streit, Vortrag anlässlich der 48. Jahrestagung der GEWISOLA "Risiken in der Agrar und Ernährungswirtschaft und Ihre Bewältigung", 24.-26. September, Bonn
13. Jain, G., & Foster, D. (2000). Come rain, come shine. In: Energy and Power Risk Management – Weather Risk Special Report, Vol. 5, Nо. 5, London, United Kingdom of Great Britain and Northern Ireland.
14. Lakićević, M., Milutinović S., Žarevac, M. (2013). Makroekonomski efekti regulacije i deregulacije, Menadžment u hotelijerstvu i turizmu (HiT Menadžment), 1(1), 91-99.
15. Marković, Т., Ivanović, S., & Todorović, S. (2013). Reduction in Revenue Volatility in Maize Production Applying the Indirect-Index Insurance. Economics of Agriculture, 60(3), 445-454.
16. Marković, T. (2013). Vremenski derivati i upravljanje rizikom u poljoprivredi, Univerzitet u Novom Sadu, Poljoprivredni fakultet, Novi Sad, Srbija.
17. Marković, Т., Veselinović, J., & Kokot, Ž. (2016). Reduction of Volatility Yield and Prices in Corn Production Using Revenue Insurance. Economics of Agriculture, 63(3), 959-972.
18. Miranda, M. J. (1991). Area-Yield Crop Insurance Reconsidered, American Journal of Agricultural Economics, 73, 233-242.
19. Prettenthaler, F., Strametz, Sandra, Töglhofer, C., & Türk, A. (2006). Anpassungsstrategien gegen Trockenheit - Bewertung ökonomisch-fnanzieller versus technischer Ansätze des Risikomanagements, Wegener Center Verlag, Graz.
20. Schlieper, P. (1997). Ertragsausfallversicherung und Intensität pflanzlicher Produktion, Wiesbaden
21. Skees, J. R., Black, J. R., & Barnett, B. J. (1997). Designing and Rating an Area Yield Crop Insurance Contract, American Journal of Agricultural Economics, 79, 430-438.
22. The World Bank (2009). Index – based Crop Insurance in Senegal, Promoting Access to Agricultural Insurance for Small Farmers, Sustainable Development, Africa Region, Finance and Private Sector Development.
23. Veselinović J. (2011). Privredno pravo, Univerzitet u Novom Sadu, Poljoprivredni fakultet, Novi Sad, Srbija.
24. Veselinović, J., Marković, Т., & Đukić, S. (2014). Analysis of Legal and Economic Aspects of Precipitation Weather Derivatives for Serbian Agricultural Sector. Economics of Agriculture, 61(4), 053-1067.
25. Wolf, T. (1998). Ernteversicherungssysteme als Risk-Management Instrument für den Landwirt und ihr Einsatz im Rahmen der US-Agrarpolitik, Masterarbeit, München-Weihenstephan, Deutschland.
26. www. http://webrzs.stat.gov.rs/WebSite/Public/ReportView.aspx
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Published
2018-01-20
How to Cite
Marković, T., Veselinović, J., & Kokot, Željko. (2018). ECONOMIC AND LEGAL ASPECTS OF SUNFLOWER INSURANCE USING THE MODEL OF REGIONAL INDEX. Economics of Agriculture, 65(1), 215–228. https://doi.org/10.5937/ekoPolj1801215M
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Original scientific papers
