Studies from University of Guelph in the Area of Risk Management Described (Business Risk Management Program and Risk-balancing In Ontario Hog Sector: an Empirical Analysis): Risk Management

2022 DEC 14 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Current study results on Risk Management have been published. According to news reporting out of Guelph, Canada, by NewsRx editors, research stated, “Business risk management (BRM) has been an important focus of Canadian agricultural policy in the New Millennium. Safety net payments received by farmers can alter their investment portfolio and lead to risk-balancing behavior in agriculture.”

Financial support for this research came from Ontario Ministry of Agriculture, Food and Rural Affairs.

Our news journalists obtained a quote from the research from the University of Guelph, “Risk-balancing is an unintended consequence of the farm safety net program and has a direct implication for future growth and sustainability of farm business. Does risk-balancing exist in Ontario agriculture? This question is addressed in this paper using data for the hog sector in Ontario. While safety net programs were designed to address Business Risk (BR) for all farms, our empirical results indicate that CAIS/AgriStability payments reduced BR for small, medium, and large farms. The results from our fixed effect panel regression analysis demonstrate that there is a significant risk-balancing behavior among medium hog farms in Ontario.”

According to the news editors, the research concluded: “Our results also reveal that the presence of risk-balancing behavior in Ontario hog sector does not pose any problem for future growth of the hog sector or the long-term sustainability of the farm safety net program.”

This research has been peer-reviewed.

For more information on this research see: Business Risk Management Program and Risk-balancing In Ontario Hog Sector: an Empirical Analysis. Canadian Journal of Agricultural Economics/Revue canadienne d agroeconomie, 2022. Canadian Journal of Agricultural Economics/Revue canadienne d agroeconomie can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA.

Our news journalists report that additional information may be obtained by contacting Rakhal Sarker, University of Guelph, Dept Food Agr & Resource Econ, Guelph, On, Canada. Additional authors for this research include Truc Phan, Yu Na Lee and Alfons Weersink.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1111/cjag.12321. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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