Objective
It is well-known that agriculture is a risky business. In addition to the catastrophic events, farmers face double-risk by involving in production, namely output and price risks. Naturally, traditional insurance systems are developed to cover these risks: yield insurance covers the output risk and price insurance covers fluctuations in prices. Currently, as the European Union commission reports suggest, European countries offer mostly classical insurance systems. However, none of these systems offer enough coverage regarding farmers’ revenues. As a result, the cost of uninsured risk keeps farmers dependent on the government subsidies by shying them away from possibly higher-return but risky activities. This project aims to develop, implement, and evaluate an optimal index-based revenue insurance mechanism which will allow the agricultural households to manage and minimize their risks. The index developed will not be affected by households or the insurance agency, thereby eliminating the possibility of adverse selection and moral hazard. Unlike the current insurance schemes, the suggested innovative system will be market-based, self-sustainable, and easily scalable to the entire EU Region and the Associates. It will address both of the major risks faced by farmers while minimizing the need for government involvement in the market. Successful establishment of the proposed insurance mechanism will provide European farmers with the tools necessary to compete in the world markets. Soon after developing a feasible model, a particular emphasis will be put on outreach and education of farmers to make them familiar with basics of risk management and insurance. While the proposed scheme can easily be implemented by insurance agents, complex index-based contracts might stand as a potential barrier to create effective demand. An innovative financial education technique based on repeated games will be employed to familiarize agricultural households with financial concepts.
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
- social sciences sociology governance crisis management
- agricultural sciences agriculture, forestry, and fisheries agriculture
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Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
FP7-PEOPLE-2009-RG
See other projects for this call
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Coordinator
06800 Ankara
Türkiye
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.