Abstract
Risk management in agriculture is at the heart of major reforms in many OECD countries and European agricultural policies. Price risks, which are generally not insurable per se, have been covered by the Common Agricultural Policy (CAP), which has been shaped as a system of protection against market shocks and an instrument for income stabilization. However, there is an increasing propensity to combine the use of public and private risk management tools as well. In Spain, revenue insurance has not yet developed in the same way as other risk coverage insurance, although it is an upcoming target of agricultural insurance policies with the aim of ensuring income stability for agricultural producers. This paper presents the results of the methodology used to draw up a composition index or model of the average price for the season or representative market field price to be used for revenue insurance purposes in citrus fruit. High explanatory power regression models and the analytic hierarchy process (AHP) were used. The results show that the average price for the season obtained reliably represents the market field prices in the country’s various producer areas.
Highlights
Agriculture is a strategic sector in the economy due to its close relationship with two essential factors that are tied to people’s quality of life: food and the environment
Agricultural Policy (CAP), which has been shaped as a system of protection against market shocks and an income stabilization instrument [15]
These are the monthly field prices obtained in each region by variety of orange, mandarin, lemon, and grapefruit
Summary
Agriculture is a strategic sector in the economy due to its close relationship with two essential factors that are tied to people’s quality of life: food and the environment. Uncertainty and risk stem from a multitude of factors such as hazards related to weather, pests, and diseases, as well as changes in both market conditions and the policy context in which farmers operate and trade [1]. Against this backdrop, risk management in agriculture is at the heart of major recent and ongoing reforms in numerous Organisation for Economic Co-operation and Development countries [2,3]. Many factors cannot be controlled by farmers, even though they have a direct impact on their holdings’ earnings, and this explains the importance for producers
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
