Farm Income Stabilization Effectiveness and Income Stabilization Tool
Abstract
There is a high and growing risk in agriculture, which makes choosing the right tool to support risk management in agriculture more urgent. Traditional agricultural production insurance is very expensive and often - as is the case in Poland - does not provide adequate coverage. Income insurance, which ensures more complex coverage, may be an alternative to it and, as there is no perfect correlation between the value of individual production types, may be off ered at a comparatively lower price. Based on 2004-2013 data from 4,590 Community Farm Accountancy Data Network (FADN) farms, it was proved that aggregate production insurance allows for a much lower insurance premium rate in relation to insurance of specifi c production types.
Keywords
Farm household income; Risk; Agriculture insurance; Farm Accountancy Data Network (FADN)
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(Instytut Ekonomiki Rolnictwa i Gospodarki Żywnościowej - PIB, Warszawa Poland
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