Article Crop Yield Risks and Nitrogen Fertilisation: Implications for Crop Insurance in France par Edith Kouakou, Marielle Brunette, Richard Koenig et Philippe Delacote dans la Revue d’économie politique.
Vol. 134(5), 701-737 – Institutions, Markets and Energy Transition
https://doi.org/10.3917/redp.345.0701
The notion of risk in agriculture takes on a specific meaning inherent to this sector, which is particularly exposed to natural hazards. Extremely dependent on biological processes, agriculture is highly exposed to weather-related hazards (Abler and Shortle [2000]), the frequency and intensity of which increase with climate change, directly and negatively affecting production. The question of risk management in agriculture remains a major issue in agricultural economics since most production decisions have risk implications. The risks faced by farmers have a number of specific characteristics that limit their ability to control them completely, hence the need to use risk management tools in order to control the possible adverse consequences of uncertain production frameworks. In addition to production decisions (input mix, farm organisation, etc.) that can provide risk management support, farmers have access to a number of market-based risk management tools, including forward sales, diversification and insurance contracts.
Given the susceptibility of crop yields to weather conditions and climate change, crop insurance, by mitigating weather-related risks, can play an important role in securing farmers’ incomes and is receiving growing interest from the public authorities. The COP23 identified crop insurance as a major tool to adapt to climate change (Drieux et al. [2019]). Even though crop insurance has been existing for a long time in developed countries throughout the world, its livelihood strongly depends on government support (Garrido and Zilberman [2008]; Kramer [1983]; Mahul [1998]; Smit…