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Published on: February 25, 2021
Farmer preference for innovative risk management tools to address sanitary risks: evidence based on a case study in
Elisa Giampietri1,2,3, Samuele Trestini1,2
1Department of Land, Environment, Agriculture and Forestry, University of Padova, Legnaro, Italy.
Background:
Mutual funds (MFs) are innovative risk management tools, compensating farmers for production losses due to pest infestations and plant diseases. Despite covering uninsurable risks, MFs see low farmer adoption and limited research. We surveyed 89 fruit growers in Italy's Veneto region between November 2021 and May 2022. This area has shown significant interest in MFs due to severe sanitary emergencies, such as the brown marmorated stink bug (Halyomorpha halys) infestation. Using conjoint analysis, this study explores farmers' preference for MF features to provide insights for designing more attractive MFs.
Results:
Our findings reveal that the deductible is the most important MF attribute to farmers, followed by the tariff for accessing compensation. The article also discusses farmers' utility preferences for different attributes' levels and highlights that the ideal MF is characterised by a lower deductible and tariff, pest specific risk coverage and on-farm inspection for damage assessment.
Conclusions:
These results offer valuable insights for shaping policies and engaging stakeholders in MF design, contributing to the development of these risk management tools in line with Common Agricultural Policy recommendations. The study provides a foundation for enhancing MF attractiveness to farmers and promoting wider adoption of these innovative instruments. © 2025 Society of Chemical Industry.
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