This article analyzes the consequences for risk distribution of the French Flood Prevention Action Programme (PAPI). By redirecting floods from the most vulnerable to the least vulnerable areas, PAPIs expose farmers to greater flood risks. This has led local water management institutions to...

High losses generated by natural catastrophes reduce the availability of insurance. Among the ways to manage risk, the subscriptions of participating and non-participating contracts respectively permit to implement the two major principles in risk allocation: the mutuality and the transfer...

Purpose – The purpose of this paper is to examine a new insurance policy against natural disasters. Design/methodology/approach – The authors propose an optimisation model, which involves both the insurer and the farmer. The farmer decides to insure his farm if and only if insurance improves...

Diversification is the traditional way farmers use to hedge against crop yield variations. However, most insurance policies and financial contracts do not take into account this strategy in their design. In this context, we develop a of portfolio insurance model based on area-yield crop indices....

This paper proposes a combination of participating and financial contracts in order to hedge catastrophic risk. Assuming unfair policies and the existence of a basis risk, we prove the optimal coverage is realized using: first, a participating contract, which covers the idiosyncratic part of the...

The purpose of this paper is to analyse capital structure and its dynamics for farms in Poland, a leading European Union producer. The theoretical framework is based on the trade-off and pecking order theories of capital structure. We use data from the Farm Accountancy Data Network (FADN), which...