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Communication Dans Un Congrès Année : 2010

Drought risk in France: the role of irrigation and insurance in farmers'risk management strategies

Risque de sécheresse en France: le rôle de l'irrigation et de l'assurance dans les stratégies de gestion du risque de l'agriculteur

Résumé

We analyze the way French farmers manage production risks, especially the risk of drought. To this end, we assess the role of irrigation in farmers' risk management. Based on FADN accountancy data, we jointly estimate farmers' attitudes to risk and their production decisions under risk. Because not all farmers irrigate, we use additional regressions to correct for sample selection bias and endogeneity. Results show that irrigation increases mean and variance of yields but decreases the variance of profits. Results of the probit model underline the self-insurance role of irrigation technology. Corn growers in our sample are slightly risk averse for median values of mean profits but risk lovers when they generate high gains or high losses in the production process.
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Dates et versions

hal-02594094 , version 1 (15-05-2020)

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S. Foudi, Katrin Erdlenbruch. Drought risk in France: the role of irrigation and insurance in farmers'risk management strategies. 11th Biennial Conference of the International Society for Ecological Economics, Aug 2010, Bremen, Germany. ⟨hal-02594094⟩
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