It is a single or a series of actions taken to provide humanitarian relief in a disaster situation. There are a variety of approaches used, such as direct cash transfers and debt forgiveness. Ad hoc disaster responses are generally inefficient and unreliable as they are subject to budget availability of decision makers and ad hoc rules for those who receive the assistance after the disaster. See also, Ex post Risk Management.
It insures the revenue of the entire farm rather than an individual crop by guaranteeing a percentage of average gross farm revenue, including a small amount of livestock revenue. The plan uses information from a producer’s Schedule F tax forms and the current year’s expected farm revenue to calculate the policy revenue guarantee.
It is a risk that causes loss or decline of agricultural production or farmers’ revenues, such as adverse weather and commodity price shocks.
It is the process towards becoming better at dealing with risks. It requires anticipating potential risks and planning solutions in advance, so as to limit their negative consequences. Key elements of ARM can be summarized by the ARM cycle that includes the following steps: the identification of the risks, the assessment of the risks, the identification of risk management tools to put in place, the implementation of the tools, and monitoring and evaluating the effectiveness of the tools and strategy that are in place.
It is a contract providing insurance against specific perils or events (e.g., area-yield loss, drought, flood) defined and recorded in a certain region – for example, at a country or district level in the case of yields, or at a local weather station in the case of insured weather events. Indemnities are paid based on losses at a regional rather than farm level. Such insurance is less subject to adverse selection and moral hazard.
It describes how they respond to risks using ARM tools. An effective strategy may include one tool or a combination of tools to improve the response to the negative consequences of risks.
