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ARS Home » Northeast Area » Beltsville, Maryland (BARC) » Beltsville Agricultural Research Center » Adaptive Cropping Systems Laboratory » Research » Publications at this Location » Publication #371957
Research Project: Experimentally Assessing and Modeling the Impact of Climate and Management on the Resiliency of Crop-Weed-Soil Agro-Ecosystems

Location: Adaptive Cropping Systems Laboratory

Title: Managing stranded assets and protecting the food value chains from natural disasters

Author
item ANBHUMOZHI, VENKATACHALAM - Economic Research Institute For Asean And Asia
item Reddy, Vangimalla

Submitted to: Symposium Proceedings
Publication Type: Proceedings
Publication Acceptance Date: 1/11/2017
Publication Date: 1/11/2017
Citation: Anbhumozhi, V., Reddy, V. 2017. Managing stranded assets and protecting the food value chains from natural disasters. 2017 ASAE 9th International Conference, January 11-13, Bangkok, Thailand 284807, Asian Society of Agricultural Economists. Symposium Proceedings. https://doi.org/10.22004/ag.econ.284807.
DOI: https://doi.org/10.22004/ag.econ.284807

Interpretive Summary: None

Technical Abstract: Stranded assets are those that have suffered unanticipated or premature write downs and lose value or turn into liabilities due to external shocks. Environmental risk factors such as natural disasters, climate change, water scarcity etc. that could cause asset stranding of agriculture are poorly understood in the context of food value chain (FVC). The value at risk (VaR) globally is significant in agriculture due to over-exposure to stranded assets throughout our financial and economic systems. Our objective is to discuss the issue of stranded assets and the environmental risks involved with food value chains. This paper provides an overview of the environmental risk disasters and climate change as agriculture asset stranding in FVC. We present the impact of disasters triggered by natural hazards on the economic losses of the agricultural value chain and loss of value added growth with further discussion on the principles of effective disaster risk reduction in FVC. Disaster when combined with climate change poses challenges by creating fluctuations in yields, supply shortfalls, subsequent global trading patterns, and substantial effects on FVC. Finally, we present strategies for building resilient FVCs in partnership with communities.