Mitchell Roznik, Milton Boyd, Lysa Porth and C. Brock Porth
The purpose of this paper is to examine factors affecting the use of forage index insurance. Forage is a difficult crop to insure, and index insurance may be well suited for…
Abstract
Purpose
The purpose of this paper is to examine factors affecting the use of forage index insurance. Forage is a difficult crop to insure, and index insurance may be well suited for forage insurance and has been implemented in several countries, including Canada, the USA and France. Despite being a promising risk management tool, forage index insurance participation rates in Canada, and other countries are low relative to crop insurance participation rates for grain and oilseed producers.
Design/methodology/approach
A survey was conducted with 87 beef and cattle producers from Alberta and Saskatchewan, Canada. A probit regression model was used, and a number of variables were included to examine the use of forage index insurance.
Findings
In total, 6 of 11 variables in the model are found to be statistically significant in explaining forage producers’ use of forage index insurance. Results suggest that producers who maintain lower feed reserves are more likely to purchase forage index insurance. Also, producers with higher levels of knowledge of crop insurance and a more positive attitude toward forage insurance are more likely to use forage index insurance. Furthermore, producers are more likely to use forage index insurance if they perceive drought and weather risk as being of greater importance, and if they are younger. The importance of the variable forage index insurance premium price was statistically insignificant. This could be due to the effect of subsidization, reducing the importance of price for the decision to purchase. Similarly, the use of other subsidized risk management policies, including a whole-farm margin policy (e.g. the government program and AgriStability), did not reduce forage index insurance use. A possible explanation for this is that the subsidization of the policies may make it profitable to purchase both, despite the overlapping coverage.
Practical implications
These results may be useful for policy makers interested in increasing forage index insurance participation rates, as forage index insurance participation rates have historically been low relative to grain and oilseed producers.
Originality/value
This study is believed to be one of the first studies regarding the use of forage index insurance by forage producers. Producers can be exposed to catastrophic risks such as drought or other extreme weather events, and forage index insurance may be an effective means to manage these risks. Index insurance determines payments using an index that is correlated to producers’ actual yields. A downside of this method is basis risk, which is the mismatch between the insured index and the producer’s actual yield. Research has focused on basis risk and developing improved methods to reduce basis risk. However, less research has investigated the other important factors that may contribute to forage index insurance use. Producers may have a different risk management environment regarding forage production compared to other farm activities, and these differences have largely not been examined.
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Keywords
The purpose of the present paper is to review studies on weather index-insurance as a tool to manage the climate change impact risk on farmers and to explore the study gaps in the…
Abstract
Purpose
The purpose of the present paper is to review studies on weather index-insurance as a tool to manage the climate change impact risk on farmers and to explore the study gaps in the currently existing literature by using a systematic literature review.
Design/methodology/approach
This study analyzed and reviewed the 374 articles on weather index insurance (WII) based on a systematic literature search on Web of Science and Scopus databases by using the systematic literature review method.
Findings
WII studies shifted their focus on growing and emerging areas of climate change impact risk. The finding shows that the impact of climate change risk significantly influenced the viability of WII in terms of pricing and design of WII. Therefore, the cost of WII premium increases due to the uncertainty of climate change impact that enhances the probability of losses related to insured weather risks. However, WII has emerged as a risk management tool of climate insurance for vulnerable agrarian communities. The efficacy of WII has been significantly influenced by repetitive environmental disasters and climate change phenomena.
Research limitations/implications
This study will be valuable for scholars to recognize the missing and emerging themes in WII.
Practical implications
This study will help the policy planners to understand the influence of climate change impact on WII viability.
Originality/value
This study is the original work of the author. An attempt has been made in the present study to systematically examine the viability of WII for insuring the climate change risk.
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On another page we reprint some of the specially library paragraphs from the Fourth Annual Report of the Carnegie Trustees; and we believe that no apology is necessary for…
Abstract
On another page we reprint some of the specially library paragraphs from the Fourth Annual Report of the Carnegie Trustees; and we believe that no apology is necessary for bringing them thus separately to all library workers. This beneficent institution is pursuing a policy in regard to our movement which, in its generosity, liberality, and at the same time cautious and wise restraint, must have the warm approval of librarians. It has been realized in a practical fashion that the library movement should not be allowed to stagnate during the war, because the most insistent calls upon the services and resources of libraries are likely to be made very soon after the cessation of hostilities, and if libraries are prepared now to meet those calls there should then be an impetus to the movement that will establish it finally.
Moustafa Abdelmotaleb, Nacef Mouri and Sudhir K. Saha
The purpose of this study is to examine the relationship between leader-signaled knowledge-hiding behavior (LSKH) and employee organizational identification (OI) with…
Abstract
Purpose
The purpose of this study is to examine the relationship between leader-signaled knowledge-hiding behavior (LSKH) and employee organizational identification (OI) with self-interest climate perceptions (SIC) as a mediator. This study also takes into consideration the impact of individual differences (i.e. employee trait of agreeableness) in shaping these relationships.
Design/methodology/approach
Two-wave data were collected from a sample of employees working in service industry companies in Egypt (N = 305). The mediation model (model 4) and the moderated mediation model (model 14) were tested using the statistical package for the social sciences PROCESS macro. The indirect effect of LSKH behavior on employee OI was examined using the bootstrapping approach (n = 5,000) with 95% confidence intervals (CI) for the indices.
Findings
Findings show that LSKH behavior has a negative impact on employee OI through SIC perceptions. Additionally, a moderation analysis indicates that the employee trait agreeableness strengthens the negative relationship between SIC and OI as well as the indirect relationship between LSKH behavior and employee OI.
Originality/value
While previous studies mainly focused on employee knowledge-hiding behavior, this study extends this nascent stream of literature by investigating the impact of this behavior at the leader’s level in the Egyptian cultural context. The results provide insights into the consequences of this type of behavior on important outcomes, namely, SIC and OI.