Recent changes in the Common Agricultural Policy suggest the possibility of an enlarged crop insurance programme in Europe (Art. 37-39 of EU Reg. 1305/2013). Several countries in the European Union already have national crop insurance schemes, but the performance of these programmes in terms of realised demand has been low, and at EU level the participation in crop insurance programmes is around 20 per cent. This situation can be contrasted with the federal crop insurance programme in the US which covers the majority of all agricultural land. We review the existing programmes in the EU and US to provide direction on two questions: is there any justification for subsidised crop insurance and how could such a scheme possibly be implemented in the EU? We argue that, while in the long run it may be desirable to establish an EU-wide crop insurance programme, there are several serious impediments to implementation in terms of effectiveness and feasibility. A more immediate approach could be increased flexibility of national insurance systems. In particular, weather-based index insurance and revenue insurance present possible solutions that may be worthy of consideration at the national level.

Crop Insurance in the EU: Lessons and Caution from the US

Santeramo, Fabio G.;
2017-01-01

Abstract

Recent changes in the Common Agricultural Policy suggest the possibility of an enlarged crop insurance programme in Europe (Art. 37-39 of EU Reg. 1305/2013). Several countries in the European Union already have national crop insurance schemes, but the performance of these programmes in terms of realised demand has been low, and at EU level the participation in crop insurance programmes is around 20 per cent. This situation can be contrasted with the federal crop insurance programme in the US which covers the majority of all agricultural land. We review the existing programmes in the EU and US to provide direction on two questions: is there any justification for subsidised crop insurance and how could such a scheme possibly be implemented in the EU? We argue that, while in the long run it may be desirable to establish an EU-wide crop insurance programme, there are several serious impediments to implementation in terms of effectiveness and feasibility. A more immediate approach could be increased flexibility of national insurance systems. In particular, weather-based index insurance and revenue insurance present possible solutions that may be worthy of consideration at the national level.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11369/361050
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