Email this article COVID-19 VS. RISK MANAGEMENT SYSTEMS IN THE US AND CANADIAN AGRICULTURE
Abstract
COVID-19 pandemic disturbed the normal functioning of the global and national economies. Numerous sectors experienced serious fall in their economic activity due to lockdowns. Agriculture has not been the biggest victim of the sudden storm in the socio-economic life, but some parts of the sector suffered visible disturbance to their normal activities and resulted in revision of policies aiming at food supply stabilization.
The importance of the risk management systems in agriculture has been growing as the global interconnectedness and climate changes result in increasing riskiness of agricultural activity.
The aim of the paper is to show one of the most advanced agriculture risk management systems, that is the US and Canadian ones and to assess how well fitted they are to support farming in times of abrupt turbulences. The study is based on literature review. The study shows that both US and Canadian agriculture risk management systems offer a wide range of support tools and can be swiftly modified to strengthen their effectiveness when needed.
Keywords
Full Text:
PDFReferences
Agriculture and Agri-Food Canada (2018). Agriculture and Agri-Food Canada 2017-18 Departmental Results Report, 12858E. Retrieved from https://www.agr.gc.ca/resources/prod/doc/pdf/drr-rrm_2017-18-eng.pdf
Arora, A. (2017), Canadian agriculture: evolution and innovation, Statistics Canada. Retrieved from:: https://www150.statcan.gc.ca/n1/en/pub/11-631-x/11-631-x2017006-eng.pdf?st=CecNGkhf
Barichello, R. (2020). The COVID-19 pandemic: Anticipating its effects on Canada’s agricultural trade. Canadian Journal of Agricultural Economics, 68, 219-224. https://doi.org/10.1111/cjag.12244
Béné, Ch. (2020). Resilience of local food systems and links to food security – A review of some important concepts in the context of COVID-19 and other shocks. Food Security, 12, 805-822. https://doi.org/10.1007/s12571-020-01076-1
Biggs, B. (2019). A Statistical Glance at the Recent History of Farm Income. Retrieved from https://www150.statcan.gc.ca/n1/pub/21-004-x/2019001/article/00002-eng.htm
Biggs R., Schlűter M., Biggs D., Bohensky E.L., BurnSilver S., Cundill G., Dakos V., Daw T.M., Evans L.S., Kotschy K., Leitch A.M., Meek Ch., Quinlan A.,
Raudsepp-Hearne C., Robards M.D., Schoon M.L., Schultz L. and West P.C. (2012). Toward Principles for Enhancing the Resilience of Ecosystem Services. Annual Review of Environment and Resources, 37, 421-48.
Cabell, J.C., Oelofse, M. (2012). An Indicator Framework for Assessing Agroecosystem Resilience. Ecology and Society, 17(1), 18.
Deaton, B.J., Deaton, B.J. (2020). Food security and Canada’s agricultural system challenged by COVID-19. Canadian Journal of Agricultural Economics, 68, 143-149. https://doi.org/10.1111/cjag.12227
Farnsworth, D. (2020). U.S. COVID-19 Policy Affecting Agricultural Labor. Choices Magazine, 35, 1-6.
FSA (2019a). Dairy Margin Coverage Program, USDA, Fact Sheet 2019. Retrieved from https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/ 2019/dairy_margin_coverage_program-june_2019_fact_sheet.pdf
FSA (2019b). Livestock Indemnity Program Fact Sheet July 2019. Retrieved from https://www.fsa.usda.gov/Assets/USDAFSAPublic/usdafiles/FactSheets/2019/livestock_indemnity_program-fact_sheet-july_2019.pdf
Goddard, E. (2020). The impact of COVID-19 on food retail and food service in Canada: Preliminary assessment. Canadian Journal of Agricultural Economics, 68, 157-161. https://dpi.org/10.1111/cjag.12243
Hailu, G. (2020). Economic thoughts on COVID-19 for Canadian food processors. Canadian Journal of Agricultural Economics, 68, 163-169. https://doi.org/10.1111/cjag.12241
Hobbs, J.E. (2020). Food supply chains during the COVID-19 pandemic. Canadian Journal of Agricultural Economics, 68, 171-176. https://doi.org/10.1111/cjag.12237
Hughes, D.W. (2020). COVID-19 Impact on Activity for Smaller Agricultural Processing and Marketing Firms: May 17-23, 2020, Versus June 21-27, 2020 Extension Reports, 304963, University of Tennessee, Department of Agricultural and Resource Economics.
Ker, A.P. (2020). Risk management in Canada’s agricultural sector in light of COVID-19. Canadian Journal of Agricultural Economics, 68, 1-8.
Ker, A.P., Barnett, B., Jacques, D. & Tolhurst, T. (2017). Canadian Business Risk Management: Private Firms, Crown Corporations, and Public Institutions. Canadian Journal of Agricultural Economics, 65, 591-612. https://doi.org/10.1111/cjag.12144
Mishra, A., Bruno, E., Zilberman, D. (2021). Compound natural and human disasters: Managing drought and COVID-19 to sustain global agriculture and food sectors. Science of the Total Environment, 754, 142210
Nielson, J. (2020, July 30). Crisis as Opportunity: The triple challenge to global food systems. Retrieved from:
https://www.oecd-forum.org/posts/crisis-as-opportunity-the-triple-challenge-to-global-food-systems
OECD (2020). Strengthening Agricultural Resilience in the Face of Multiple Risks. OECD Publishing, Paris. https://doi.org/10.1787/2250453e-en.
RMA (2018). Rainfall And Vegetation Index Plan Common Policy. USDA, Risk Management Agency. Retrieved from https://www.rma.usda.gov/-/media/RMAweb/Policies/Rainfall-Index/2018/Rainfall-and-Vegetation-Index-Plan-Common-Policy-18-RIVI.ashx?la=en
RMA (2020a). Livestock Gross Margin For Dairy Cattle Insurance Policy, Basic Provisions Terms And Conditions, USDA, Risk Management Agency. Retrieved from https://www.rma.usda.gov/-/media/RMAweb/Policies/Livestock-Gross-Margin-Dairy/2021/LGM-Dairy-Policy.ashx
RMA (2020b). Livestock Insurance Plans. USDA, Risk Management Agency. Retrieved from https://www.rma.usda.gov/Policy-and-Procedure/Insurance-Plans/ Livestock-Insurance-Plans
Statistics Canada (2020). Table 32-10-0052-01 Net farm income (x 1,000). Retrieved from https://doi.org/10.25318/3210005201-eng
United States Department of Agriculture, National Agricultural Statistics Service (2019). 2017 Census of Agriculture. Washington: USDA.
Urruty, N., Tailliez-Lefebvre, D. & Huyghe, Ch. (2016). Stability, robustness, vulnerability and resilience of agricultural systems. A review. Agronomy for Sustainable Development, 36, 15. https://doi.org/10.1007/s13593-015-0347-5
Wieliczko, B. (2019). Can the common agricultural policy support building resilient farms in the EU?, Economic and Social Development [in:] A. Lorga da
Silva, D. Tomic, A. Grilec (2019), 39th International Scientific Conference on Economic and Social Development – "Sustainability from an Economic and Social Perspective" Book of Proceedings, p. 447-454.
Wiréhn, L, Danielsson, Å & Neset, T-SS. (2015). Assessment of composite index methods for agricultural vulnerability to climate change. Journal of Environmental Management, 156, 70-80. https://doi:10.1016/j.jenvman.2015.03.020
World Bank (2020). Agriculture – data. Retrieved from https://data.worldbank.org/
DOI: https://doi.org/10.19197/tbr.v19i3.328
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Print ISSN: 1643-8175, Online ISSN: 2451-0955, DOI prefix: 10.19197, Principal Contact: tbr@wsb.torun.pl