The impact of natural disaster on agriculture. Case of Albania.

Abstract

Albania has been continuously affected by natural disasters such as floods, droughts, earthquakes with devastating consequences not only in the the economy and development of the country but also in people's lives. Therefore, the implementation of financial strategies for the minimization of risks in case of natural disasters is necessary. In this research paper we will identify the strategies that Albanian farmers use to reduce the consequences of natural disaster on agricultural sector. Finding the main factors that influence the selection of the risk minimization strategy by farmers in another objective of this study. The mythology we will use to prove the hypothesis is qualitative one. The research instrument is a questionnaire. The questionnaire will be distributed to farmers who live in areas that are more affected by natural disasters. Some strategies that farmers use to cope with risk are credit extensions, selling assets, use of personal food stocks, support of relatives and off farm employment. The use of agricultural insurance as a strategy for risk mitigation is at a low level in Albania. Farmers' risk controlling strategies in Albania are influenced by socio-economic variables such as age, gender, income etc.