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Risk Management and Actuarial Science for Sustainable Agribusiness

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: closed (31 December 2022) | Viewed by 4796

Special Issue Editors

Department of Economics and Finance, Gordon S. Lang School of Business, University of Guelph, Guelph, ON N1G 2W1, Canada
Interests: data analytics in insurance; insurance economics; agriculture insurance
Special Issues, Collections and Topics in MDPI journals

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Guest Editor
Gordon S. Lang School of Business Economics, University of Guelph, Guelph, ON N1G 2W1, Canada
Interests: actuarial science; finance; risk mangement and insurance
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

Our world is facing increasing socio-economic and environmental pressures on our food supply. As the global population continues to grow to an estimated 9.6 billion by 2050, innovative solutions are required to meet the demands. Meanwhile, the effects of climate change have put further strain on food security and led to an increase in the vulnerability of the agricultural sector. Further, agriculture has an important impact on global greenhouse gas emissions and water consumption. Therefore, there is an urgent need to transform production and consumption decisions on the farm to achieve a more sustainable agricultural sector. The academic and research community constitutes a very important group of stakeholders who can strongly contribute to achieving sustainable agribusiness through knowledge generation, innovation, data, technical analysis, and training the next generation of students in building a sustainable agribusiness future.

The Special Issue on “Risk Management and Actuarial Science for Sustainable Agribusiness” promotes an interdisciplinary approach with an emphasis on the risk management and actuarial science aspects of agribusiness sustainability. The desired focus areas of this Special Issue include, but are not limited to, the following: climate change, food security, data analysis, technology, and insurance design. Other topics in risk management aspects regarding the production and supply chain of the agriculture sector are also welcome. In particular, recent literature in the area of agricultural risk management and insurance has focused on insurance participation, microinsurance, weather index-based insurance, basis risk, farm financial stability, etc. This Special Issue makes an important contribution to extending works on these research areas under a special sustainability lens. We especially welcome presentations of research with an inter-/multidisciplinary approach

Dr. Hong Li
Prof. Dr. Lysa Porth
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • sustainability
  • agribusiness
  • risk management
  • actuarial science
  • food security
  • agri-insurance
  • climate change
  • yield forecasting
  • financial stability
  • policy
  • supply chain

Published Papers (2 papers)

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Research

16 pages, 712 KiB  
Article
Enhanced Agriculture Insurance with Climate Forecast
by Lanlan Li, Zhengqiao Liu, Jing-Yi Chen, Yang-Che Wu and Hong Li
Sustainability 2022, 14(17), 10617; https://0-doi-org.brum.beds.ac.uk/10.3390/su141710617 - 25 Aug 2022
Cited by 1 | Viewed by 1331
Abstract
This paper presents a model to study how climate forecasts and the agricultural production function affect the effectiveness of government policies (disaster bailouts and agricultural income tax) and agricultural insurance (both compulsory and voluntary). In the base model with a neoclassical production function, [...] Read more.
This paper presents a model to study how climate forecasts and the agricultural production function affect the effectiveness of government policies (disaster bailouts and agricultural income tax) and agricultural insurance (both compulsory and voluntary). In the base model with a neoclassical production function, we find that these programs could increase farmers’ expected profit and reduce its volatility. Furthermore, credible climate forecasts enable farmers, insurance companies, and governments to make more informed cultivate and insurance decisions, and therefore increase the benefit of these insurance programs to farmers. The results suggest that climate forecasts, combined with agriculture policies and insurance, can play an important role in securing farmers’ profits and providing climate risk management guidance for agriculture production. Full article
(This article belongs to the Special Issue Risk Management and Actuarial Science for Sustainable Agribusiness)
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24 pages, 2013 KiB  
Article
Assessing the Effectiveness of the Actuaries Climate Index for Estimating the Impact of Extreme Weather on Crop Yield and Insurance Applications
by Qimeng Pan, Lysa Porth and Hong Li
Sustainability 2022, 14(11), 6916; https://0-doi-org.brum.beds.ac.uk/10.3390/su14116916 - 06 Jun 2022
Cited by 1 | Viewed by 2176
Abstract
This paper investigates the effectiveness of the Actuaries Climate Index (ACI), a climate index jointly launched by multiple actuarial societies in North America in 2016, on predicting crop yields and (re)insurance ratemaking. The ACI is created using a variety of climate variables reflecting [...] Read more.
This paper investigates the effectiveness of the Actuaries Climate Index (ACI), a climate index jointly launched by multiple actuarial societies in North America in 2016, on predicting crop yields and (re)insurance ratemaking. The ACI is created using a variety of climate variables reflecting extreme weather conditions in 12 subregions in the US and Canada. Using data from eight Midwestern states in the US, we find that the ACI has significant predictive power for crop yields. Moreover, allowing the constituting variables of the ACI to have data-driven rather than pre-determined weights could further improve the predictive accuracy. Furthermore, we create the county-level ACI index using high-resolution climate data and investigate its predictive power on county-level corn yields, which are more relevant to insurance practices. We find that although the self-constructed ACI index leads to a slightly worse fit due to noisier county-specific yield data, the predictive results are still reasonable. Our findings suggest that the ACI index is promising for crop yield forecasting and (re)insurance ratemaking, and its effectiveness could be further improved by allowing for the data-driven weights of the constituting variables and could be created at higher resolution levels. Full article
(This article belongs to the Special Issue Risk Management and Actuarial Science for Sustainable Agribusiness)
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