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1、RiskinAgriculture–AStudyofCropYieldDistributionsandCropInsuranceⅠ.IntroductionAgricultureistheprovideroffoodsecurityandisimportanttotheeconomyofanycountry.AccordingtotheFoodandAgriculturalOrganization,“Foodsecurityexistswhenallpeople,atalltimes,haveaccesstosufficient,s
2、afeandnutritiousfoodtomeettheirdietaryneedsandfoodpreferencesforanactiveandhealthylife.”Foodsecurityisamajordeterminantofnationalsecurityandselfsufficiencyinfoodproductionandisvitalforanycountry.InIndia,agricultureandalliedsectorsemployabout60%ofthetotalworkforceandacc
3、ountfor25%ofthetotalGDPofthecountry.Since1950,continuousimprovementshaveoccurredinirrigation,technology,applicationofmodernagriculturalpractices,andavailabilityofagriculturalcredit.Thishasbeencalledthe“greenrevolution”andhasresultedindevelopmentofhighyieldingvarieties.
4、Theseimprovementshaveledtosignificantincreaseincropyieldperunitarea.However,,incomparisontoothercountries,theaverageyieldinIndiaisstilllowandisequalto30%to50%ofthehighestaverageyieldintheworld.(Wikipedia)IntheUS,agriculturehasplayedanimportantroleintheearlyyearsbutitss
5、hareofGDPandnumberofpeopleemployedhascontinuouslydecreased.AccordingtothedatacompiledbytheeconomicresearchserviceoftheUnitedStatesDepartmentofAgriculture(USDA),in1930,theagriculturesectoremployed21.5%ofthetotalworkforceintheUSandagricultureGDPaccountedfor7.7%ofthetotal
6、GDPofthecountry.But,intheyear2000,1.9%ofthetotalworkforcewasemployedinagriculture.In2002,GDPofagriculturewasjust0.7%ofthetotalGDPofUS(Wikipedia)ChangesincommoditypricesinanimportantfactorinfluencingtheshareofagricultureassociatedwithGDP.Thepricesofagriculturalcommoditi
7、eshaveincreasedovertime;howevertheshareofagricultureaspartofGDPhasdecreasedbecauseofthehigherproductionofgoodsandservicesinothersectors.Agricultureisabusinessinunique.Cropproductionisdependentonmanyclimatic,geographical,biological,politicalandeconomicfactorsthataremost
8、lyindependentofoneanother,Thesemultiplefactorsintroducerisk,Theefficientmanagementoftheserisksisimperativeforthesucce
