Should the Swedish Rural Development Programme include support to instruments for risk management?

Authors: Sören Höjgård 

This PM discusses whether Sweden should include support to risk management instruments in its Rural Development programme. The conclusions are:

  • Support to funds financing measures to prevent the occurrence of and repair the damages caused by natural disasters may be of interest as it is difficult to find solutions for these highly systemic risks in the private insurance market.
  • However, before incorporating these supports in the Rural Development Programme, the issue of defining ”natural disasters” needs to be resolved. Moreover, as other sectors also may benefit from the preventive measures to be financed by the fund, the question of whether the support should be financed solely by the European Agricultural Fund for Rural Development or jointly with other EU funds within the Common Strategic Framework needs to be resolved.
  • The proposed subsidies to instruments for the management of less extensive risks are of smaller interest as the proposals are very similar to the solutions already practiced in several member states. The fact that Swedish farmers have shown little interest in them suggest that they do not find them efficient given their risk exposure and the costs of these instruments.
  • The publication is in Swedish.


Sören Höjgård