IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v10y2020i8p336-d395338.html
   My bibliography  Save this article

Who Is Afraid of Biotic Threats? An Econometric Analysis of Veneto Wine Grape Farmers’ Propensity to Insure

Author

Listed:
  • Laura Onofri

    (Department of Land, Environment, Agriculture and Forestry, University of Padua, Via dell’Università 16, 35020 Legnaro (PD), Italy)

  • Samuele Trestini

    (Department of Land, Environment, Agriculture and Forestry, University of Padua, Via dell’Università 16, 35020 Legnaro (PD), Italy)

  • Vasco Boatto

    (Department of Land, Environment, Agriculture and Forestry, University of Padua, Via dell’Università 16, 35020 Legnaro (PD), Italy)

Abstract

This paper aims at understanding what affects farmers’ choices to buy insurance against biotic threats. Using a survey-based dataset with 1187 observations on Veneto wine grapes farms, we regress a probit model with endogenous variables with a maximum likelihood (ML) routine. The results corroborate the microeconomic theory according to which risk-adverse individuals are more propense to insure. In our framework, the farmers’ socioeconomic characteristics are treated as endogenous variables, which exist/are predetermined before the choice to insure (or not). This paper discusses the results in a policy perspective.

Suggested Citation

  • Laura Onofri & Samuele Trestini & Vasco Boatto, 2020. "Who Is Afraid of Biotic Threats? An Econometric Analysis of Veneto Wine Grape Farmers’ Propensity to Insure," Agriculture, MDPI, vol. 10(8), pages 1-9, August.
    • Handle: RePEc:gam:jagris:v:10:y:2020:i:8:p:336-:d:395338
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/10/8/336/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2077-0472/10/8/336/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Poorvi Iyer & Martina Bozzola & Stefan Hirsch & Manuela Meraner & Robert Finger, 2020. "Measuring Farmer Risk Preferences in Europe: A Systematic Review," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(1), pages 3-26, February.
    2. Milton Boyd & Jeffrey Pai & Qiao Zhang & H. Holly Wang & Ke Wang, 2011. "Factors affecting crop insurance purchases in China: the Inner Mongolia region," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 3(4), pages 441-450, November.
    3. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
    4. Ruth Vargas Hill & John Hoddinott & Neha Kumar, 2013. "Adoption of weather-index insurance: learning from willingness to pay among a panel of households in rural Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 44(4-5), pages 385-398, July.
    5. Cornelis Gardebroek, 2006. "Comparing risk attitudes of organic and non-organic farmers with a Bayesian random coefficient model," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 33(4), pages 485-510, December.
    6. Chavas, Jean-Paul & Holt, Matthew T, 1996. "Economic Behavior under Uncertainty: A Joint Analysis of Risk Preferences and Technology," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 329-335, May.
    7. Teresa Serra & David Zilberman & José M. Gil, 2008. "Differential uncertainties and risk attitudes between conventional and organic producers: the case of Spanish arable crop farmers," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 219-229, September.
    8. Lien, Gudbrand, 2002. "Non-parametric estimation of decision makers' risk aversion," Agricultural Economics, Blackwell, vol. 27(1), pages 75-83, May.
    9. Falola, Abraham & Ayinde, Opeyemi Eyitayo & Agboola, Babatola Olasunkanmi, 2013. "Willingness To Take Agricultural Insurance By Cocoa Farmers In Nigeria," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 1(1), pages 1-12, July.
    10. Lyu, Kaiyu & Barre, Thomas, 2015. "Crop Insurance Program Purchase Decision and Role of Risk Aversion: Evidence from Maize Production Areas in China," 2015 Conference, August 9-14, 2015, Milan, Italy 212199, International Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Claudio Bellia & Pietro Columba & Marzia Ingrassia, 2022. "The Brand–Land Identity of Etna Volcano Valley Wines: A Policy Delphi Study," Agriculture, MDPI, vol. 12(6), pages 1-32, June.
    2. Artemi Cerdà & Jesús Rodrigo-Comino, 2021. "Regional Farmers’ Perception and Societal Issues in Vineyards Affected by High Erosion Rates," Land, MDPI, vol. 10(2), pages 1-18, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martina Bozzola & Robert Finger, 2021. "Stability of risk attitude, agricultural policies and production shocks: evidence from Italy," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(3), pages 477-501.
    2. Viaggi, Davide & Raggi, Meri & Gomez y Paloma, Sergio, 2011. "Farm-household investment behaviour and the CAP decoupling: Methodological issues in assessing policy impacts," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 127-145, January.
    3. Marie Lassalas & Sabine Duvaleix & Laure Latruffe, 2024. "The technical and economic effects of biodiversity standards on wheat production," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 51(2), pages 275-308.
    4. Peterson, Hikaru Hanawa & Tomek, William G., 2000. "Commodity Price Behavior: A Rational Expectations Storage Model of Corn," Working Papers 127682, Cornell University, Department of Applied Economics and Management.
    5. Lefebvre, Marianne & Midler, Estelle & Bontems, Philippe, 2020. "Adoption of environmentally-friendly agricultural practices with background risk: experimental evidence," TSE Working Papers 20-1079, Toulouse School of Economics (TSE).
    6. Laure Latruffe & Céline Nauges, 2014. "Technical efficiency and conversion to organic farming: the case of France," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 41(2), pages 227-253.
    7. Simone Severini & Cinzia Zinnanti & Valeria Borsellino & Emanuele Schimmenti, 2021. "EU income stabilization tool: potential impacts, financial sustainability and farmer’s risk aversion," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-21, December.
    8. Robert Finger & Nadja El Benni, 2021. "Farm income in European agriculture: new perspectives on measurement and implications for policy evaluation," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(2), pages 253-265.
    9. Dong, Fengxia & Mitchell, Paul D., 2023. "Economic and risk analysis of sustainable practice adoption among U.S. corn growers," Agricultural Systems, Elsevier, vol. 211(C).
    10. Ahearn, Mary Clare & Collender, Robert N. & Diao, Xinshen & Harrington, David H. & Hoppe, Robert A. & Korb, Penelope J. & Makki, Shiva S. & Morehart, Mitchell J. & Roberts, Michael J. & Roe, Terry L. , 2004. "Decoupled Payments In A Changing Policy Setting," Agricultural Economic Reports 33981, United States Department of Agriculture, Economic Research Service.
    11. Christian Grovermann & Sylvain Quiédeville & Adrian Muller & Florian Leiber & Matthias Stolze & Simon Moakes, 2021. "Does organic certification make economic sense for dairy farmers in Europe?–A latent class counterfactual analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 52(6), pages 1001-1012, November.
    12. Chaplin, S.P. & Mills, J. & Chiswell, H., 2021. "Developing payment-by-results approaches for agri-environment schemes: Experience from an arable trial in England," Land Use Policy, Elsevier, vol. 109(C).
    13. Mekonnen, Tigist, 2017. "Willingness to pay for agricultural risk insurance as a strategy to adapt climate change," MERIT Working Papers 2017-028, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    14. Robert Finger & Lucca Zachmann & Chloe McCallum, 2023. "Short supply chains and the adoption of fungus‐resistant grapevine varieties," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(3), pages 1753-1775, September.
    15. Monjardino, M. & McBeath, T. & Ouzman, J. & Llewellyn, R. & Jones, B., 2015. "Farmer risk-aversion limits closure of yield and profit gaps: A study of nitrogen management in the southern Australian wheatbelt," Agricultural Systems, Elsevier, vol. 137(C), pages 108-118.
    16. Chen, Huang, 2015. "Expectations, Index Qualities and Basis Risks in Explaining Farmers' Pessimism in Purchasing Weather Index Insurance," 2015 Conference, August 9-14, 2015, Milan, Italy 211461, International Association of Agricultural Economists.
    17. Jason R.V. Franken & Joost M.E. Pennings & Philip Garcia, 2017. "Risk attitudes and the structure of decision†making: evidence from the Illinois hog industry," Agricultural Economics, International Association of Agricultural Economists, vol. 48(1), pages 41-50, January.
    18. Möhring, Niklas & Dalhaus, Tobias & Enjolras, Geoffroy & Finger, Robert, 2020. "Crop insurance and pesticide use in European agriculture," Agricultural Systems, Elsevier, vol. 184(C).
    19. Shaibu, U.M. & Ibitoye, S.J. & Ibrahim, M.K. & Shaibu, Y.A., 2020. "Modeling the Factors that Influence Farmers’ Participation in Agricultural Insurance Scheme in Kogi State, Nigeria: Implications for Agricultural Policy," Nigerian Agricultural Policy Research Journal (NAPReJ), Agricultural Policy Research Network (APRNet), vol. 7(1), May.
    20. Nordmeyer, Eike Florenz & Danne, Michael & Musshoff, Oliver, 2023. "Can satellite-retrieved data increase farmers' willingness to insure against drought? – Insights from Germany," Agricultural Systems, Elsevier, vol. 211(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jagris:v:10:y:2020:i:8:p:336-:d:395338. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.