The Economics Of Livestock Disease Insurance

This book on the economics of livestock disease insurance is organized into three major parts. Following an introduction (chapters 1-2), part II (chapters 3-8) includes a variety of discussions about what is known about how to build a livestock insurance programme. It begins with a look at the conceptual basis for government involvement in the management of livestock diseases, including prevention, control, regulation and eradication. This discussion is picked up by looking at incentive compatibility and insurability conditions in the private sector, emphasizing how livestock disease management is unique. Compensation is also examined, including what losses should be compensated, choosing a method to value the losses, determining the portion of losses to compensate, and outlining a potential role for insurance. Finally, the complexity of the risks at the farm level is demonstrated using a model that evaluates revenue insurance. Part III (chapters 9-20) offers a diverse discussion about disease management issues and programmes in Australia, Canada, Europe and the USA. These chapters include more discussion about how to build economically sound insurance programmes, and observations are based on modelling or observing case studies. The book has a subject index.

Annotation. Illustrated with review studies on animal health economics, this book presents information on the most important economic tools applied to livestock, covering both theory and practical applications. Topics covered include gross margin analysis, partial budgeting, investment and financial appraisal and cost-benefit analysis. There are also sections on decision tree analysis, optimisation methods, value chain analysis, new institutional economics, DALYs and a range of policy analysis tools. International experts contribute on important theoretical and practical aspects of animal health and production economics, with global themes on livestock and poverty.

In recent years the livestock sector has been hit by a number of high-profile diseases, such as BSE,Foot and Mouth Disease and Avian Influenza. These have had a devastating economic impact onlivestock producers and the broader livestock industry. One key response has been a growing interestin livestock disease insurance. However there is a need for greater understanding of private incentives,market impacts, and public policy perspectives on regional, national and international levels, if livestockinsurance products and complementary risk management programmes are to be developed.This book provides a balanced and broad-ranging overview of the economics of livestock diseaseinsurance. It covers both general issues and specific case studies drawn from the USA, Canada, Europeand Australia or focussing on specific issues. The book is unique in addressing this subject and willinterest readers in agricultural business and economics, veterinary science and the livestock sector.

Management of farm animal diseases is increasingly important in view of the threats they pose to farm incomes and sometimes even to the viability of farm enterprises, wildlife and humans.

Animal health and economics are closely linked. Any decision taken to prevent, control and eliminate an animal disease is based not only on the technical knowledge available about a particular disease but also on the effectiveness and socio-economic aspects associated with interventions and mitigation measures implemented by governments, producers and all the actors along the livestock value chains. Economic rationale drives decisions in assessing particular investments which are likely to result in a benefit for society or for a specific stakeholder, including livestock farmers and communities. These guidelines prepared by FAO will contribute to a better understanding of the importance of economic analysis when assessing the impact of a particular animal disease in production, trade, market access, food security and livelihoods of rural communities, or when designing or implementing an animal health strategy at national, regional or global level. This framework will provide a good communication tool between animal health technicians, veterinarians and economists in developing countries and will encourage a well informed collaboration between veterinarians, animal health experts, economists and social scientists for livestock and socio-economic development. Economic analysis should be an essential part of animal disease policies and disease management strategies.