The FARM project investigates agricultural drought risk management both in a broad European context and more specifically in Austria.
In the US and other countries, subsidized crop insurance has sometimes led to significant economic and environmental problems, and is important therefore to research consequences of crop insurance policy, and its alternatives, across Europe. Austria, as a country where subsidized hail and frost policies have an outstanding penetration rate of 85% and index insurance for grassland and maize has recently been introduced, is well suited as a case study that explores the risks and opportunities of alternative insurance and risk management schemes.
FARM is built around three main objectives:
The project combines multiple disciplines and areas of expertise, including crop modeling (EPIC model), mathematics and statistics (the copula approach), economics (assessing fiscal and other economic impacts), anthropology (the theory of plural rationality or cultural theory), social empirical research (questionnaire survey), participatory methods and decision analysis (group multi-criteria analysis and robust decision making). FARM investigates probabilistic crop loss and risk management responses tailored to different risk layers (high, medium and low consequence risks) under different climate scenarios. Policy options are scrutinized by eliciting the risk management preferences of farmers, insurers and government authorities.
The continuous involvement of key actors and interest groups, through interviews and workshops, is an integral part of FARM. The research team maintains informal contact with stakeholders, and welcomes questions, ideas, comments, and other feedback.
The three year project is financed by the Austrian Climate Research Program. It is carried out by IIASA’s Risk and Resilience and Ecosystems management programs, with advice and support from the Wharton Risk Management and Decision Processes Center.
INFORMATION AUF DEUTSCH
Risk and Resilience
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Last edited: 24 July 2019
1 May 2016 - 30 April 2019
Hanger, S. & Hochrainer-Stigler, S. (2017). Agricultural drought insurance: Austria as a case study. International Institute for Applied Systems Analysis
International Institute for Applied Systems Analysis (IIASA)
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