Files
Abstract
This paper discusses the main issues and driving forces of government policies in the area of risk
management in agriculture, with particular emphasis on good policy practices and the international
environment. Four main ideas are developed. First, good policy and good policy analysis requires a holistic
approach. This is particularly so in this policy area because risks interact prominently with both farm
household strategies and government programs and regulations in terms of risk reduction impacts and the
development of market tools and strategies. Second, the rational for government actions which are based
on market failure or equity concerns need to be defined in order to analyze its nature and scope, as well as
to develop appropriate government measures. Third, the context of all support measures to agriculture must
be considered because there are potential risk-related effects associated with most forms of support,
particularly in OECD countries with high level of support to agriculture. Fourth, risk management
measures need to comply with international agreements, particularly the Agreement on Agriculture of the
World Trade Organization. Implications for good policy in this area have already been drafted by OECD
and are useful for policy analysis.