Evaluating the Potential of Whole-Farm Insurance Over Crop-Specific Insurance Policies

Since 1996, different formats of whole-farm insurance (WFI) have been launched in North America and Spain. Their rationale is to pool all farm's insurable risks into a single policy that provides cheaper coverage against the farm's revenue losses. We evaluate the gains of moving from a situation of full insurance coverage delivered by crop-specific policies to WFI. Based on the records of individual farmers gathered by the Spanish Agricultural Insurance Agency (ENESA), we select two representative farms in Valencia that have consistently purchased insurance during 1993-2004 for three crops (apricots, plums and wine grapes). WFI is designed to deliver exactly the same expected revenue than does the combined effects of three crop-specific multiple-peril insurance policies, covering from the same risks. We carry out Monte-Carlo simulations to compare crop-specific insurance with WFI, looking at premium differences, farms' revenues, and farmers' utilities (DARACRRA). From ENESA's database we evaluate the parameters of the yield distribution functions, the eligible losses distribution functions and their correlation. Results show that WFI is slightly superior to crop-specific insurance. Premia are 20% cheaper, and certainty equivalents slightly larger. Yet, the left tail of the revenue distribution is only weakly reduced by either insurance strategy, due to crop risks that are not covered by either policy. The main conclusion is that, if crop-specific insurance is sufficiently mature, farmers would benefit from WFI and Governments would enhance the efficiency of their insurance subsidies.agricultural insurance, whole-farm insurance, simulation, crop risks, Spanish agriculture, Risk and Uncertainty, Q14, G, Q18,

Income Stabilisation in a Changing Agricultural World: Policy and Tools

This paper attempts to draw conclusions regarding Risk Management instruments (RMI) for potential development or expansion in the EU (Garrido and Bielza, 2007). Using data from EU countries, compiled in the course of two EU research projects about RMIs, we perform a cross-sectional analysis of the role of agricultural insurance and ad hoc payments. Tests of comparisons of means of key insurance data reveal the impact of insurance policies and the degree of competitiveness in supply side. While the presence of subsidies explains differences across EU member states' (MSs) insurance data, the degree of competitiveness is not a differentiating factor. In the last part of the paper, we rate a number of RMIs on the basis of a number of criteria. We conclude that RMIs on EU scale should be flexible enough to accommodate very diverse risk contexts, farmers’ demands and ongoing national programmes. Our conclusions may be useful in defining RMIs within the scope of European Agricultural Policy, and as an extension of similar studies (Cafiero et al. 2005; European Commission (2006a).

Revenue Insurance as an Income Stabilization Policy: An Application to the Spanish Olive Oil Sector

Various forms of revenue insurance have been applied in Canada and in the US with relative success. In this paper different combinations of traditional agricultural policies and revenue and yield insurance are analysed for the Spanish olive oil sector. Taking a database containing about half million Spanish olive growers during 8 campaigns, five possible policies are studied and the results are examined according to different criteria including average revenue and its variability, growers utility gains, taxpayers cost and the transfer efficiency of support. The policies analysed are: (1) non-intervention; (2) the policy currently in force in Spain that combines a production aid with a yield insurance; (3) a revenue insurance, only; (4) revenue insurance combined with a production aid; and (5) an aid per tree in combination with revenue insurance. The methodology is based on Monte-Carlo simulations performed on about 100 groups of growers that have been grouped according to their expected yields and variability. Assuming and estimating olive oil price and yields correlations for each group of growers, the analysis allows for consistent policy comparisons at a very disaggregate level. Using the results for all analysed groups, policies are ranked based on the above criteria at the provincial and national levels. Results show that the current regime of EU production aids of olive oil eliminates the advantage of extending the current yield insurance to a revenue insurance. It is also shown that the level of support delivered by production aids cannot be reached with revenue insurance even with completely subsidised premiums. Finally, it is shown that the policy that combines tree aids with revenue insurance exhibits good results for all examining criteria.Agricultural policy, revenue insurance, olive oil sector, Risk and Uncertainty,

Des specialists ont declaré que c´etait une veritable Église Chrétienne de 5.000 ans avant Jesus Christ!

[Resumen] En repetidas ocasiones, Le Corbusier se muestra orgulloso con aquellas declaraciones que apuntan un preciado vínculo entre su arquitectura y la arquitectura de las primitivas iglesias cristianas. El presente artículo desgrana las sutiles pero intensas correspondencias entre el contenido original de las tradiciones litúrgicas y los mecanismos de iluminación directa utilizados en la iglesia de Saint-Pierre de Firminy-Vert. Una relación que al mismo tiempo pone de manifiesto las connotaciones poéticas de las fuentes de luz, que en este proyecto se transforman en una potente herramienta capaz de desatar nuestra emoción bajo la atenta mirada del arquitecto.[Abstract] Several times, Le Corbusier appears quite proud of those testimonies that point up a valuable link between his architecture and the architecture of the early Christian churches. This article pinpoints the subtle but intense correlation between the original content of liturgical traditions and the mechanisms of the direct lighting used in the church of Saint-Pierre of Firminy-Vert; a relation that at the same time exhibits the poetic connotations of the light sources, which in this project become a powerful tool able to unleash our emotions under the attentive eye of the architect

Saint-Pierre de Firminy-Vert: el edificio como objet-à-réaction-émouvante

Cada proyecto del arquitecto es un pequeño paso que, desplazándose de un lado a otro, avanza inexorablemente hacia un objetivo claro: la machine à émouvoir. Le Corbusier acomete la disciplina de la Arquitectura desplegando sus inquietudes en varios frentes simultáneos. La crítica, por norma general, ha descuidado esta consonancia de intereses comunes, fragmentando y disgregando aspectos aparentemente inconexos que en realidad vibran animados por la misma energía que les da forma: la poesía. Este trabajo quiere rescatar y reubicar todos esas piezas, que iluminadas bajo un mismo fulgor han de ayudar a comprender esta visión integradora. No es una lectura unívoca, lineal. A través de este viaje perfilaremos un extenso mapa de conexiones e interacciones que en última instancia pondrán de manifiesto una discurso proyectual monolítico, sintético e universal. Como vehículo de traslación, queremos utilizar una obra de reconocida proyección pero que al mismo tiempo ha permanecido hasta nuestros días ajena al alcance del rigor científico y analítico que se merece. Su estudio nos permitirá fijar un punto de origen, un punto de apoyo, una atalaya desde la que iniciar una larga marcha que, en último término, nos ha de conducir a la misma posición desde donde comenzamos, cerrando así un ciclo vital

Cambridge University Press: Taking knowledge forward

Presentación comercia

El altar y la puerta en la iglesia parroquial de Saint-Pierre de Firminy-Vert

En su artículo “Los trazados reguladores” de L’Esprit Nouveau de 1921, Le Corbusier enuncia la geometría primaria que estructura y ordena la construcción de la Choza Primitiva. La puerta del cercado y la de la tienda están perfectamente enfrentadas. Según el templo primitivo del dibujo original de Reinhold von Lichtenberg, el acceso de la empalizada, el del santuario y el altar, también lo están. Un ejemplo clásico fielmente reflejado en el Templo de Júpiter del Foro de Pompeya, que el arquitecto visita durante su Viaje a Oriente (FLC D 2859). La iglesia parroquial de Saint-Pierre de Firminy-Vert recupera este mismo mecanismo cincuenta años más tarde, emulando una situación prevista inicialmente en la iglesia de Le Tremblay (1929). Este texto analiza la evolución del proyecto a través de la ‘promenade architecturale’ que vincula la puerta y el altar