Yield risk and the potential for insurance in agriculture
2018
Nurmet, M., Estonian Univ. of Life Sciences, Tartu (Estonia). Inst. of Economics and Social Sciences | Lemsalu, K., Estonian Univ. of Life Sciences, Tartu (Estonia). Inst. of Economics and Social Sciences | Poder, A., Estonian Univ. of Life Sciences, Tartu (Estonia). Inst. of Economics and Social Sciences
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 indicates that cereal yields and yield volatility differ across the Estonia regions, and the potential market volume for crop insurance is low.
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