Complex Agricultural Risk Management System: a new information system supporting the claim adjustment process in the Hungarian agriculture

Rieger, László and Kemény, Gábor (2014) Complex Agricultural Risk Management System: a new information system supporting the claim adjustment process in the Hungarian agriculture. AGRÁRINFORMATIKA / JOURNAL OF AGRICULTURAL INFORMATICS, 5 (1). pp. 27-36. ISSN 2061-862X

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Abstract

On annual basis the magnitude of weather-related risks of the Hungarian farmers approaches the 100 billion HUF. It is about 5 percent of the 2200 billion HUF annual gross output value of the Hungarian agriculture. It is a continuous tendency that climate factors are more and more significantly influencing the agricultural crop production. Therefore, reducing the weather risks is an important objective of the Hungarian agricultural administration. For this the agricultural administration is forming risk-management groups for producers by strengthening the liability for their decisions, and providing more significant support by the agricultural administration. This new system is based on two pillars: the first pillar is an extended mitigation system, and the second one is a business-based state-sponsored insurance system. First we describe the agricultural risk management in general, then the "paper-based" coordinated mitigation system launched in 2012, finally the integrated mitigation system being under development. Our study reveals in recent year agricultural risk management which is going through important changes, in particular a significant reduction in its administrative burden for farmers and public administration. The other improvement is the accuracy of agricultural meteorological risk evaluation based on agricultural risk database for public decision-making.

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