IDEAS home Printed from https://ideas.repec.org/p/ags/eaae14/182854.html
   My bibliography  Save this paper

Market-type and government supported risk management in the Hungarian agriculture

Author

Listed:
  • Tóth, József
  • Nemes, Anna

Abstract

In 2012 Hungary introduced the two-pillar risk management system. The first pillar refers to an “all-risk” fund, where the participation of agricultural producers is obliged above a certain size. The second pillar is market based voluntary insurance with state-support scheme. Our research question: what are the key factors influencing the insurance decisions of producers? We have unbalanced FADN data of 1395 producers with 7177 observations between 2001 and 2012. Based on random effect panel probit model we have found that income, diversity, concentration and size of area were playing significant role in farmers’ decisions. Naïve expectations were also present.

Suggested Citation

  • Tóth, József & Nemes, Anna, 2014. "Market-type and government supported risk management in the Hungarian agriculture," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182854, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182854
    DOI: 10.22004/ag.econ.182854
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/182854/files/Poster_paper_T_th-Nemes_100714.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.182854?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Miller, Alan & Dobbins, Craig L. & Pritchett, James G. & Boehlje, Michael & Ehmke, Cole, 2004. "Risk Management For Farmers," Staff Papers 28640, Purdue University, Department of Agricultural Economics.
    2. Scott H. Irwin & Cameron S. Thraen, 1994. "Rational Expectations in Agriculture? A Review of the Issues and the Evidence," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 16(1), pages 133-158.
    3. Keith H. Coble & Barry J. Barnett, 2013. "Why Do We Subsidize Crop Insurance?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(2), pages 498-504.
    4. Luisa Menapace & Gregory Colson & Roberta Raffaelli, 2013. "Risk Aversion, Subjective Beliefs, and Farmer Risk Management Strategies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(2), pages 384-389.
    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. Bulut, Harun & Collins, Keith J., 2013. "Political Economy of Crop Insurance Risk Subsidies under Imperfect Information," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150577, Agricultural and Applied Economics Association.
    2. jean georges innocent magloire TAPE & Kouamé Jean-Marc N'DRI, 2023. "Gestion du risque opérationnel et performance des banques en zone UEMOA," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 14(2), pages 128-141, December.
    3. Miao, Ruiqing & Hennessy, David A. & Feng, Hongli, 2016. "The Effects of Crop Insurance Subsidies and Sodsaver on Land-Use Change," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(2), May.
    4. Yi, Jing & Richardson, James & Bryant, Henry, 2016. "How Do Premium Subsidies Affect Crop Insurance Demand at Different Coverage Levels: the Case of Corn," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236249, Agricultural and Applied Economics Association.
    5. Freudenreich, Hanna & Musshoff, Oliver & Wiercinski, Ben, 2017. "The Relationship between Farmers' Shock Experiences and their Uncertainty Preferences - Experimental Evidence from Mexico," GlobalFood Discussion Papers 256212, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    6. Abdulai, Issaka & Hoffmann, Munir P. & Jassogne, Laurence & Asare, Richard & Graefe, Sophie & Tao, Hsiao-Hang & Muilerman, Sander & Vaast, Philippe & Van Asten, Piet & Läderach, Peter & Rötter, Reimun, 2020. "Variations in yield gaps of smallholder cocoa systems and the main determining factors along a climate gradient in Ghana," Agricultural Systems, Elsevier, vol. 181(C).
    7. Roussy, Caroline & Ridier, Aude & Chaib, Karim, 2014. "A methodological proposal to approach farmers’ adoption behavior: stated preferences and perceptions of the innovation," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182983, European Association of Agricultural Economists.
    8. Caroline Roussy & Aude Ridier & Karim Chaïb, 2014. "Adoption d’innovations par les agriculteurs : rôle des perceptions et des préférences," Post-Print hal-01123427, HAL.
    9. Zulauf, Carl R. & Orden, David, 2014. "Assessing the Political Economy of the 2014 U.S. Farm Bill," 2014: Food, Resources and Conflict, December 7-9, 2014. San Diego, California 197160, International Agricultural Trade Research Consortium.
    10. Chèze, Benoît & David, Maia & Martinet, Vincent, 2020. "Understanding farmers' reluctance to reduce pesticide use: A choice experiment," Ecological Economics, Elsevier, vol. 167(C).
    11. Frechette, Darren L., 1999. "The Supply Of Storage Under Heterogeneous Expectations," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(3), pages 1-14, December.
    12. Trestini, Samuel & Giampietri, Elisa & Smiglak-Krajewska, Magdalena, 2018. "Farmer behaviour towards the agricultural risk management tools provided by the CAP: a comparison between Italy and Poland," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 271978, European Association of Agricultural Economists.
    13. Dai, Yongwu & Chang, Hung-Hao & Liu, Weiping, 2015. "Do forest producers benefit from the forest disaster insurance program? Empirical evidence in Fujian Province of China," Forest Policy and Economics, Elsevier, vol. 50(C), pages 127-133.
    14. De Lapparent, Alice & Sabatier, Rodolphe & Paut, Raphaël & Martin, Sophie, 2023. "Perennial transitions from market gardening towards mixed fruit tree - vegetable systems," Agricultural Systems, Elsevier, vol. 207(C).
    15. Sauer, Johannes & Finger, Robert, 2014. "Climate Risk Management Strategies in Agriculture – The Case of Flood Risk," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 172679, Agricultural and Applied Economics Association.
    16. David Orden & Carl Zulauf, 2015. "Political Economy of the 2014 Farm Bill," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(5), pages 1298-1311.
    17. Malik, Ravinder Paul Singh & Amarnath, Giriraj, 2021. "Economics of Index-based Flood Insurance (IBFI)," IWMI Water Policy Briefings 316618, International Water Management Institute.
    18. Aditya, K.S. & Kishore, Avinash & Khan, Tajuddin, 2020. "Exploring farmers’ willingness to pay for crop insurance products: A case of weather-based crop insurance in Punjab India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 33(2), December.
    19. Malik, Ravinder Paul Singh & Amarnath, Giriraj, 2021. "Economics of Index-based Flood Insurance (IBFI): scenario analysis and stakeholder perspectives from South Asia," IWMI Working Papers H050736, International Water Management Institute.
    20. Mianseli Elisabeth Tankoano & Martin Sawadogo, 2022. "Farmers' perceptions and adoption of agroecological practices in the Central-North region of Burkina Faso [Perceptions des agriculteurs et adoption des pratiques agroécologiques dans la région du C," Post-Print hal-03939540, HAL.

    More about this item

    Keywords

    Risk and Uncertainty;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ags:eaae14:182854. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.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.