Advertisement

Importance of Whole-Farm Risk Management in Agriculture

  • Ruud Huirne
  • Miranda Meuwissen
  • Marcel Van Asseldonk
Part of the International Series In Operations Research amp; Mana book series (ISOR, volume 99)

Risk management is an increasingly important topic. At the farm level, it received little attention in Europe. Research indicates that whole-farm riskmanagement approaches, that is approaches in which multiple risks and farm activities are considered simultaneously, seem more efficient than ‘single risk and commodity strategies’. This chapter first gives an overview of risk management and then it discusses the results of a questionnaire survey among livestock and arable farmers in the Netherlands. The survey deals with farmers’ perceptions of risk and risk-management strategies. Risk-management strategies include both ‘single risk’ strategies as well as strategies for simultaneously covering multiple risks. The latter are restricted to the type of strategies currently available in the Netherlands. Next, opportunities for broadening the scope of risk-management strategies covering multiple risks are discussed. The paper concludes by identifying areas for further research in the field of whole-farm risk management.

Keywords

Risk Management Financial Risk Production Risk Price Risk Arable Farmer 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Anderson, J.R., Dillon, J.L., Hardaker, J.B., 1977, Agricultural Decision Analysis. Iowa State University Press, Ames, Iowa.Google Scholar
  2. Barry, P.J., Ellinger, P.N., Hopkin, J.A., Baker, C.B.,2000, Financial Management in Agriculture. Interstate, Danville, Illinois.Google Scholar
  3. Belli, P., Anderson, J.R., Barnum, H.N., Dixon, J.A., Tan, J.-P., 2001, Economic Analysis of Investment Operations. WBI Development Studies, The World Bank, Washington, D.C.Google Scholar
  4. Boehlje, M.D., Lins, D.A., 1998, Risks and risk management in an industrialized agriculture. Agric. Finance Rev. 58: 1-16.Google Scholar
  5. Churchill, G.A., 1995, Marketing Research Methodological Foundations. The Dryden Press, New York.Google Scholar
  6. Courtney, H., Kirkland, J., Viguerie, P., 1997, Strategy under uncertainty. Harvard Bus. Rev. 75: 67-79.Google Scholar
  7. European Commission, 2001, Risk Management Tools for EU Agriculture, with a Special Focus on Insurance. Working Document, Agriculture Directorate-General.Google Scholar
  8. Goodwin, B.K., Ker, A.P., 1998, Revenue insurance—a new dimension in risk management. Choices 13(4): 24-27.Google Scholar
  9. Hardaker, J.B., Huirne, R.B.M., Anderson, J.R., Lien, G., 2004, Coping with Risk in Agriculture, second edition. CAB International, Wallingford.CrossRefGoogle Scholar
  10. Huirne, R.B.M., 2002, Strategy and risk in farming. Neth. J. Agr. Sci. 50: 249-259.Google Scholar
  11. Huirne, R.B.M., Hardaker, J.B., Dijkhuizen, A.A. (eds), 1997, Risk Management Strategies in Agriculture: State of the Art and Future Perspectives. Mansholt Studies, No. 7, Wageningen Agricultural University, Wageningen.Google Scholar
  12. Huirne, R.B.M., Meuwissen, M.P.M., Hardaker, J.B., Anderson, J.R., 2000, Risk and risk management in agriculture: an overview and empirical results. Int. J. Risk Assess. Manage. 1: 125-136.CrossRefGoogle Scholar
  13. Meuwissen, M.P.M., Huirne, R.B.M., Hardaker, J.B., 1999, Income Insurance in European Agriculture. Scientific Report EU-Project, European Economy, No. 2, DGII, Brussels, pp. 95.Google Scholar
  14. Meuwissen, M.P.M., Huirne, R.B.M., Hardaker, J.B., 2001, Risks and risk management strategies; an analysis of Dutch livestock farmers. Livest. Prod. Sci. 69: 43-53.CrossRefGoogle Scholar
  15. Meuwissen, M.P.M., Huirne, R.B.M., Skees, J.R., 2003a, Income insurance in European agriculture. EuroChoices (Spring), 12-17.Google Scholar
  16. Meuwissen, M.P.M., Velthuis, A.G.J., Hogeveen, H., Huirne, R.B.M., 2003b, Traceability and certification in meat supply chains. J. Agribusiness 21: 167-181.Google Scholar
  17. Skees, J.R., 1999, Agricultural risk management or income enhancement? Regulation. Cato Rev. Bus. Gov. 22: 35-43.Google Scholar
  18. Unnevehr, L.J., Miller, G.Y., Gómez, M.I., 1999, Ensuring food safety and quality in farm-level production: emerging lessons from the pork industry. Am. J. Agric. Econ. 81: 1096-1101.CrossRefGoogle Scholar
  19. Van Asseldonk, M.A.P.M., Meuwissen, M.P.M., Huirne, R.B.M., 2001, Stochastic simulation of catastrophic hail and windstorm indemnities in the Dutch greenhouse sector. Risk Anal. 21: 761-769.CrossRefGoogle Scholar
  20. Velthuis, A.G.J., Unnevehr, L.J., Hogeveen, H., Huirne, R.B.M. (eds), 2003, New Approaches to Food-Safety Economics. Kluwer Academic Publishers, Dordrecht, The Netherlands.Google Scholar

Copyright information

© Springer Science+Business Media, LLC 2007

Authors and Affiliations

  • Ruud Huirne
    • 1
  • Miranda Meuwissen
    • 1
  • Marcel Van Asseldonk
    • 1
  1. 1.Institute for Risk Management in AgricultureWageningen UniversityThe Netherlands

Personalised recommendations