Thumbnail Image

An introduction to market-based instruments for agricultural price risk management







Also available in:
No results found.

Related items

Showing items related by metadata.

  • Thumbnail Image
    Meeting
    The challenges of managing agricultural price and production risks in sub-Saharan Africa 2014
    Also available in:

    Agricultural production is prone to several risks which affect both producers and consumers. In order to enhance investment and achieve a sustained increase in production, coherent and integrated long-term strategies and policies are required to reduce risk aversion and build resilience among African rural producers. Furthermore, the critical importance of social protection and its complementarity to risk management initiatives must be recognised. This paper investigates possible tools and instr uments to deal with various production and price risks. Market-based approaches are crucial for risk management options to thrive, but the country experiences examined have highlighted that most of the risk management instruments are not in place or are not fully developed in Sub-Saharan Africa. Farmers are not protected against production and price shocks and this underscores the critical role of governments in agricultural risk management. In view of the high correlation between production, pr ice and market risks, African governments need to adopt an integrated and holistic approach in support of risk management interventions through incentives and by strengthening agricultural markets and financial institutions. Risk management tools need to be mainstreamed into agricultural policies and programmes as currently advocated by the New Partnership for Africa’s Development (NEPAD) Planning and Coordination Agency (NPCA).
  • Thumbnail Image
    Meeting
    The challenges of managing agricultural price and production risks in sub-Saharan Africa 2014
    Also available in:

    Agricultural production is prone to several risks which affect both producers and consumers. In order to enhance investment and achieve a sustained increase in production, coherent and integrated long-term strategies and policies are required to reduce risk aversion and build resilience among African rural producers. Furthermore, the critical importance of social protection and its complementarity to risk management initiatives must be recognised. This paper investigates possible tools and instr uments to deal with various production and price risks. Market-based approaches are crucial for risk management options to thrive, but the country experiences examined have highlighted that most of the risk management instruments are not in place or are not fully developed in Sub-Saharan Africa. Farmers are not protected against production and price shocks and this underscores the critical role of governments in agricultural risk management. In view of the high correlation between production, pr ice and market risks, African governments need to adopt an integrated and holistic approach in support of risk management interventions through incentives and by strengthening agricultural markets and financial institutions. Risk management tools need to be mainstreamed into agricultural policies and programmes as currently advocated by the New Partnership for Africa’s Development (NEPAD) Planning and Coordination Agency (NPCA).
  • Thumbnail Image
    Document
    Innovative agricultural finance and risk management. Strengthening food production and trade in the transition region
    FAO Investment Centre. Directions in Investment No. 7
    2012
    Also available in:
    No results found.

    Ensuring that food production keeps up with population and income growth, changing dietary patterns and climate conditions in the decades to come is but one of the challenges currently facing developing and advanced countries around the globe. The world’s population is expected to stabilize at around 9.1 billion people in 2050, a 30 percent increase from current numbers, but demand for food will grow by 70 percent. To keep up with the pace of demand growth, yields need to improve drastically, y et there is little scope to expand acreage. Transition countries, some of which face food security problems of their own, can play an important role in achieving global food security as yields can be improved. Countries such as Kazakhstan, the Russian Federation and Ukraine, which have been net grain importers up to the late 1980s, can emerge as the world’s leading grain exporters. In order to meet rising food demand, significant investment from the private sector will be required in these tra nsition countries. Such investment needs to be catalysed through supportive policy and regulatory, legal and institutional frameworks. International financial institutions, in turn, can facilitate the creation of these frameworks in transition country governments. This paper focuses on one particularly important action area: how can various agricultural finance and risk management products, mechanisms and institutions that are relatively new to the transition region, enhance the region’s food production, processing and trading systems? These products, mechanisms and institutions include: market-based price risk management, weather index insurance, structured finance and other innovative forms of finance, warehouse receipt (WHR) systems and commodity exchanges. The paper aims to identify how international financial institutions such as the European Bank for Reconstruction and Development (EBRD) can most effectively leverage their investments and technical assistance programmes to boos t the adoption and scaling up of such products, mechanisms and institutions
  • Thumbnail Image
    Meeting
    The challenges of managing agricultural price and production risks in sub-Saharan Africa 2014
    Also available in:

    Agricultural production is prone to several risks which affect both producers and consumers. In order to enhance investment and achieve a sustained increase in production, coherent and integrated long-term strategies and policies are required to reduce risk aversion and build resilience among African rural producers. Furthermore, the critical importance of social protection and its complementarity to risk management initiatives must be recognised. This paper investigates possible tools and instr uments to deal with various production and price risks. Market-based approaches are crucial for risk management options to thrive, but the country experiences examined have highlighted that most of the risk management instruments are not in place or are not fully developed in Sub-Saharan Africa. Farmers are not protected against production and price shocks and this underscores the critical role of governments in agricultural risk management. In view of the high correlation between production, pr ice and market risks, African governments need to adopt an integrated and holistic approach in support of risk management interventions through incentives and by strengthening agricultural markets and financial institutions. Risk management tools need to be mainstreamed into agricultural policies and programmes as currently advocated by the New Partnership for Africa’s Development (NEPAD) Planning and Coordination Agency (NPCA).
  • Thumbnail Image
    Meeting
    The challenges of managing agricultural price and production risks in sub-Saharan Africa 2014
    Also available in:

    Agricultural production is prone to several risks which affect both producers and consumers. In order to enhance investment and achieve a sustained increase in production, coherent and integrated long-term strategies and policies are required to reduce risk aversion and build resilience among African rural producers. Furthermore, the critical importance of social protection and its complementarity to risk management initiatives must be recognised. This paper investigates possible tools and instr uments to deal with various production and price risks. Market-based approaches are crucial for risk management options to thrive, but the country experiences examined have highlighted that most of the risk management instruments are not in place or are not fully developed in Sub-Saharan Africa. Farmers are not protected against production and price shocks and this underscores the critical role of governments in agricultural risk management. In view of the high correlation between production, pr ice and market risks, African governments need to adopt an integrated and holistic approach in support of risk management interventions through incentives and by strengthening agricultural markets and financial institutions. Risk management tools need to be mainstreamed into agricultural policies and programmes as currently advocated by the New Partnership for Africa’s Development (NEPAD) Planning and Coordination Agency (NPCA).
  • Thumbnail Image
    Document
    Innovative agricultural finance and risk management. Strengthening food production and trade in the transition region
    FAO Investment Centre. Directions in Investment No. 7
    2012
    Also available in:
    No results found.

    Ensuring that food production keeps up with population and income growth, changing dietary patterns and climate conditions in the decades to come is but one of the challenges currently facing developing and advanced countries around the globe. The world’s population is expected to stabilize at around 9.1 billion people in 2050, a 30 percent increase from current numbers, but demand for food will grow by 70 percent. To keep up with the pace of demand growth, yields need to improve drastically, y et there is little scope to expand acreage. Transition countries, some of which face food security problems of their own, can play an important role in achieving global food security as yields can be improved. Countries such as Kazakhstan, the Russian Federation and Ukraine, which have been net grain importers up to the late 1980s, can emerge as the world’s leading grain exporters. In order to meet rising food demand, significant investment from the private sector will be required in these tra nsition countries. Such investment needs to be catalysed through supportive policy and regulatory, legal and institutional frameworks. International financial institutions, in turn, can facilitate the creation of these frameworks in transition country governments. This paper focuses on one particularly important action area: how can various agricultural finance and risk management products, mechanisms and institutions that are relatively new to the transition region, enhance the region’s food production, processing and trading systems? These products, mechanisms and institutions include: market-based price risk management, weather index insurance, structured finance and other innovative forms of finance, warehouse receipt (WHR) systems and commodity exchanges. The paper aims to identify how international financial institutions such as the European Bank for Reconstruction and Development (EBRD) can most effectively leverage their investments and technical assistance programmes to boos t the adoption and scaling up of such products, mechanisms and institutions
  • Thumbnail Image
    Meeting
    The challenges of managing agricultural price and production risks in sub-Saharan Africa 2014
    Also available in:

    Agricultural production is prone to several risks which affect both producers and consumers. In order to enhance investment and achieve a sustained increase in production, coherent and integrated long-term strategies and policies are required to reduce risk aversion and build resilience among African rural producers. Furthermore, the critical importance of social protection and its complementarity to risk management initiatives must be recognised. This paper investigates possible tools and instr uments to deal with various production and price risks. Market-based approaches are crucial for risk management options to thrive, but the country experiences examined have highlighted that most of the risk management instruments are not in place or are not fully developed in Sub-Saharan Africa. Farmers are not protected against production and price shocks and this underscores the critical role of governments in agricultural risk management. In view of the high correlation between production, pr ice and market risks, African governments need to adopt an integrated and holistic approach in support of risk management interventions through incentives and by strengthening agricultural markets and financial institutions. Risk management tools need to be mainstreamed into agricultural policies and programmes as currently advocated by the New Partnership for Africa’s Development (NEPAD) Planning and Coordination Agency (NPCA).
  • Thumbnail Image
    Meeting
    The challenges of managing agricultural price and production risks in sub-Saharan Africa 2014
    Also available in:

    Agricultural production is prone to several risks which affect both producers and consumers. In order to enhance investment and achieve a sustained increase in production, coherent and integrated long-term strategies and policies are required to reduce risk aversion and build resilience among African rural producers. Furthermore, the critical importance of social protection and its complementarity to risk management initiatives must be recognised. This paper investigates possible tools and instr uments to deal with various production and price risks. Market-based approaches are crucial for risk management options to thrive, but the country experiences examined have highlighted that most of the risk management instruments are not in place or are not fully developed in Sub-Saharan Africa. Farmers are not protected against production and price shocks and this underscores the critical role of governments in agricultural risk management. In view of the high correlation between production, pr ice and market risks, African governments need to adopt an integrated and holistic approach in support of risk management interventions through incentives and by strengthening agricultural markets and financial institutions. Risk management tools need to be mainstreamed into agricultural policies and programmes as currently advocated by the New Partnership for Africa’s Development (NEPAD) Planning and Coordination Agency (NPCA).
  • Thumbnail Image
    Document
    Innovative agricultural finance and risk management. Strengthening food production and trade in the transition region
    FAO Investment Centre. Directions in Investment No. 7
    2012
    Also available in:
    No results found.

    Ensuring that food production keeps up with population and income growth, changing dietary patterns and climate conditions in the decades to come is but one of the challenges currently facing developing and advanced countries around the globe. The world’s population is expected to stabilize at around 9.1 billion people in 2050, a 30 percent increase from current numbers, but demand for food will grow by 70 percent. To keep up with the pace of demand growth, yields need to improve drastically, y et there is little scope to expand acreage. Transition countries, some of which face food security problems of their own, can play an important role in achieving global food security as yields can be improved. Countries such as Kazakhstan, the Russian Federation and Ukraine, which have been net grain importers up to the late 1980s, can emerge as the world’s leading grain exporters. In order to meet rising food demand, significant investment from the private sector will be required in these tra nsition countries. Such investment needs to be catalysed through supportive policy and regulatory, legal and institutional frameworks. International financial institutions, in turn, can facilitate the creation of these frameworks in transition country governments. This paper focuses on one particularly important action area: how can various agricultural finance and risk management products, mechanisms and institutions that are relatively new to the transition region, enhance the region’s food production, processing and trading systems? These products, mechanisms and institutions include: market-based price risk management, weather index insurance, structured finance and other innovative forms of finance, warehouse receipt (WHR) systems and commodity exchanges. The paper aims to identify how international financial institutions such as the European Bank for Reconstruction and Development (EBRD) can most effectively leverage their investments and technical assistance programmes to boos t the adoption and scaling up of such products, mechanisms and institutions

Users also downloaded

Showing related downloaded files

No results found.