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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 #332618

Research Project: Development and Application of Mechanistic Process-Driven Crop Models for Assessing Effects and Adapting Agriculture to Climate Changes

Location: Adaptive Cropping Systems Laboratory

Title: Managing Stranded Assets and Protecting Food Value Chains from Natural Disasters

item Reddy, Vangimalla
item ANBUMOZHI, V - Economic Research Institute For Asean And Asia

Submitted to: Book Chapter
Publication Type: Book / Chapter
Publication Acceptance Date: 11/27/2016
Publication Date: 5/9/2017
Citation: Reddy, V., Anbumozhi, V. 2017. Managing Stranded Assets and Protecting Food Value Chains from Natural Disasters. Economic Research Institute for ASEAN and East Asia-ERIA. ERIA-DP-2017-01 P. 1-38.

Interpretive Summary:

Technical Abstract: Stranded assets are those that lose value or turn into liabilities due to social or environmental factors. 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 environmentally unsustainable assets throughout our financial and economic systems. Our objective is to discuss the issue of stranded assets and the environmental risks involved with agricultural value chains. This chapter 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. 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 climate resilience FVCs in partnership with communities.