IDEAS home Printed from https://ideas.repec.org/a/iag/reviea/v13y2016i1p3-12.html
   My bibliography  Save this article

Assessment Of Factors Influencing Farm Insurance In Bulgaria Through Probability Statistical Methods

Author

Listed:
  • Dimitre NIKOLOV

    (Institute of Agricultural Economics, Sofia, Bulgaria)

  • Minka CHOPEVA

    (Institute of Agricultural Economics, Sofia, Bulgaria)

Abstract

The aim of the report is to explain the impact of key factors on farm insurance level in the context of risk management. The presented results were obtained from a survey on 300 farmers within the project “Risk Management in Agriculture” in 2011–2012, carried out by a research team from IAE. The methods used are probabilistic modelling, probit and logistical statistical modelling in particular. Currently, farmers’ interest in insurances as a modality to cope with natural hazards is at a low level. The greatest chance for insurance has been found in the young farmers; those who receive a high enough amount of EU subsidies and manage utilized agricultural land areas larger than 10 ha. It is necessary to build a new insurance system in agriculture, where the risk is shared between farmers, insurance companies and the state.

Suggested Citation

  • Dimitre NIKOLOV & Minka CHOPEVA, 2016. "Assessment Of Factors Influencing Farm Insurance In Bulgaria Through Probability Statistical Methods," Agricultural Economics and Rural Development, Institute of Agricultural Economics, vol. 13(1), pages 3-12.
    • Handle: RePEc:iag:reviea:v:13:y:2016:i:1:p:3-12
    as

    Download full text from publisher

    File URL: http://www.eadr.ro/RePEc/iag/iag_pdf/AERD1601_3-12.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alberto Garrido & David Zilberman, 2008. "Revisiting the demand for agricultural insurance: the case of Spain," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 68(1), pages 43-66, May.
    2. Enjolras, Geoffroy & Capitanio, Fabian & Adinolfi, Felice, 2012. "The Demand for Crop Insurance: Combined Approaches for France and Italy," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 13(01), pages 1-18.
    3. Velandia, Margarita & Rejesus, Roderick M. & Knight, Thomas O. & Sherrick, Bruce J., 2009. "Factors Affecting Farmers' Utilization of Agricultural Risk Management Tools: The Case of Crop Insurance, Forward Contracting, and Spreading Sales," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 41(1), pages 107-123, April.
    4. Geoffroy Enjolras & Patrick Sentis, 2011. "Crop insurance policies and purchases in France," Agricultural Economics, International Association of Agricultural Economists, vol. 42(4), pages 475-486, July.
    5. Vincent H. Smith & Barry K. Goodwin, 1996. "Crop Insurance, Moral Hazard, and Agricultural Chemical Use," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 428-438.
    6. Barry K. Goodwin, 1993. "An Empirical Analysis of the Demand for Multiple Peril Crop Insurance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(2), pages 425-434.
    7. Teresa Serra & Barry K. Goodwin & Allen M. Featherstone, 2003. "Modeling changes in the U.S. demand for crop insurance during the 1990s," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 63(2), pages 109-125, November.
    8. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    Full references (including those not matched with items on IDEAS)

    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. Dimitar Nikolov & Sergio Gomez-y-Paloma & Minka Chopeva & Marianne Lefebvre, 2014. "Main Factors of the Development and Attractiveness of the Insurance Market for the Agricultural Companies," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 99-121.
    2. F. G. Santeramo & B. K. Goodwin & F. Adinolfi & F. Capitanio, 2016. "Farmer Participation, Entry and Exit Decisions in the Italian Crop Insurance Programme," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 639-657, September.
    3. Salazar, Cesar & Jaime, Marcela & Pinto, Cristian & Acuna, Andres, 2019. "Interaction between crop insurance and technology adoption decisions: The case of wheat farmers in Chile," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(3), July.
    4. Vigani, Mauro & Khafagy, Amr & Berry, Robert, 2024. "Public spending for agricultural risk management: Land use, regional welfare and intra-subsidy substitution," Food Policy, Elsevier, vol. 123(C).
    5. Liesivaara, Petri & Myyrä, Sami, 2017. "The demand for public–private crop insurance and government disaster relief," Journal of Policy Modeling, Elsevier, vol. 39(1), pages 19-34.
    6. Marco Rogna & Günter Schamel & Alex Weissensteiner, 2023. "Modelling the switch from hail insurance to antihail nets," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(1), pages 118-136, January.
    7. Richard KOENIG & Marielle BRUNETTE, 2023. "Subjective barriers and determinants to crop insurance adoption," Working Papers of BETA 2023-25, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    8. Mbonane, Nobuhle Duduzile, 2018. "An analysis of farmers’ preferences for crop insurance: a case of maize farmers in Swaziland," Research Theses 334771, Collaborative Masters Program in Agricultural and Applied Economics.
    9. Tao Ye & Yangbin Liu & Jiwei Wang & Ming Wang & Peijun Shi, 2017. "Farmers’ crop insurance perception and participation decisions: empirical evidence from Hunan, China," Journal of Risk Research, Taylor & Francis Journals, vol. 20(5), pages 664-677, May.
    10. Di Falco, Salvatore & Capitanio, Fabian & Adinolfi, Felice, 2011. "Natural Vs Financial Insurance in the Management of Weather Risk Exposure in the Italian Agriculture," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114325, European Association of Agricultural Economists.
    11. He, Juan & Zheng, Xiaoyong & Rejesus, Roderick M. & Yorobe Jr., Jose M., 2019. "Moral hazard and adverse selection effects of cost-of-production crop insurance: evidence from the Philippines," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(01), January.
    12. Rippo, Ruggiero & Cerroni, Simone, 2021. "Farmers’ Participation in the Income Stabilization Tool: Evidence from the Apple Sector in Italy," 2021 Conference, August 17-31, 2021, Virtual 315191, International Association of Agricultural Economists.
    13. Cécile Aubert & Yann Raineau & Marc Raynal & Nicolas Pasquier, 2024. "Multiple agricultural risks and insurance—issues, perspectives, and illustration for wine-growing," Review of Agricultural, Food and Environmental Studies, Springer, vol. 105(4), pages 371-391, December.
    14. Enjolras, Geoffroy & Capitanio, Fabian & Aubert, Magali & Adinolfi, Felice, 2012. "Direct payments, crop insurance and the volatility of farm income. Some evidence in France and in Italy," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122478, European Association of Agricultural Economists.
    15. Fabio G Santeramo, 2019. "I Learn, You Learn, We Gain Experience in Crop Insurance Markets," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(2), pages 284-304, June.
    16. Ramsey, Austin Ford & Santeramo, Fabio Gaetano, 2017. "Crop Insurance in the European Union: Lessons and Caution from the United States," MPRA Paper 79164, University Library of Munich, Germany.
    17. Collins-Sowah, Peron A. & Henning, Christian H. C. A., 2019. "Risk management and its implications on household incomes," Working Papers of Agricultural Policy WP2019-05, University of Kiel, Department of Agricultural Economics, Chair of Agricultural Policy.
    18. Enjolras, Geoffroy & Sentis, P., 2008. "The Main Determinants of Insurance Purchase: An Empirical Study on Crop Insurance Policies in France," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44395, European Association of Agricultural Economists.
    19. Juan He & Roderick Rejesus & Xiaoyong Zheng & Jose Yorobe, 2018. "Advantageous Selection in Crop Insurance: Theory and Evidence," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(3), pages 646-668, September.
    20. Raja Chakir & Julien Hardelin, 2010. "Crop Insurance and Pesticides in French agriculture: an empirical analysis of multiple risks management," Working Papers 2010/04, INRA, Economie Publique.

    More about this item

    Keywords

    insurance probability; farmers; probit models; CAP subsidies.;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

    Statistics

    Access and download statistics

    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:iag:reviea:v:13:y:2016:i:1:p:3-12. 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: Corina Saman (email available below). General contact details of provider: https://edirc.repec.org/data/iaacaro.html .

    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.