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Incentive Based Intervention Programs in Agriculture

Incentive Based Intervention Programs in Agriculture. Risto Rautiainen, MS Great Plains Center for Agricultural Health. Aims. Ag at Risk Goals Recent Programs Program Effectiveness Conclusion Recommendations. Ag at Risk Recommendations.

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Incentive Based Intervention Programs in Agriculture

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  1. Incentive Based Intervention Programs in Agriculture Risto Rautiainen, MS Great Plains Center for Agricultural Health

  2. Aims • Ag at Risk Goals • Recent Programs • Program Effectiveness • Conclusion • Recommendations

  3. Ag at Risk Recommendations In 1988, incentive program was not well defined concept - hence little emphasis in Ag at Risk. Occupational Health and Safety Delivery Initiatives; • Cost sharing arrangements with farmers, insurance, hospitals, communities Coalition Initiatives; • Involvement of private sector with health providers, state agencies; modified insurance rates, discounting safety equipment, low rate loans

  4. Incentive Programs Include: • Grants • Loans • Reduced insurance premiums • Rebates • Discounts

  5. Governmental Incentives • Loans • Grants • Cost share programs

  6. The Ontario Farm Management, Safety and Repair Program. • Offered 1987-88, provided grants to farmers for safety improvements. • CAD $7.2 million was used for safety improvements; maximum of $2,500 per farm, and up to 80% of the improvement costs were funded. • The demand was much greater than the available funds (27,827 applicants). • No evaluation regarding injuries. • Program was discontinued

  7. Swedish Working Life Fund, Lundqvist (1996) • The Swedish Working Life Fund provided funding for physical and technological improvements in 1990-95 • About 2,000 farm employers made improvements totaling USD $23M. • Post-intervention mail survey Dairy/beef farmers: • 22% decrease in injury rate • 29% decrease in musculoskeletal disorders • 16% decrease in work time • Improvement in work satisfaction

  8. Working Environment Loan Program, Finland • Established in response to farmers need for safety improvement funding • Subsidized loans were offered for improvements recommended by the occupational health service. • Program was initiated in 1988. • The program did not become popular and other types of loans made it obsolete in 1994.

  9. Incentives for ROPS and Safety Equipment

  10. ROPS at Cost Programs • Major manufacturers have offered ROPS “at cost” for non-ROPS tractors since late 1980’s. • Limited success, as evidenced by the slow increase in ROPS retrofits • At least one major campaign was conducted in mid 1990’s • With strong local promotion such as the studies in Kentucky and Iowa, retrofitting has increased locally.

  11. ROPS Incentive Study, NY. Hallman • The most feasible level level of support was at 75-90% - at lower levels the interest was low • Some farmers would not retrofit due to low clearance, etc. reasons even if ROPS would be offered at no cost.

  12. Rollover Protective Structure (ROPS) Grant Campaign, Virginia Farm Bureau, 1997 Stone (1998) • $150 cash incentive, education • Post-intervention survey • 33 incentives provided, total $4,950 • 61% - incentive the most important factor • 45% - had planned to purchase ROPS prior to incentive; • 41% - had not thought about purchasing a ROPS

  13. Child Safety Awards. FS4JK, Successful Farming Magazine • Successful Farming Magazine in collaboration with FS4JK and GPCAH have offered about $150 awards for child safety improvement projects on the farm • Farm families apply and describe their intended safety improvement • Nearly 100 awards made • Improvements are described in the magazine for the readers (about 0.5M)

  14. Insurance Rebate Programs

  15. Insurance Incentive Programs • Workers compensation rates adjusted according to claims experience; for instance California; high rates in dairy/beef, low rates in berry farming (Villarejo, 2000) • Several insurers have offered reduced rates if the farm passes inspection • Inspection may be required for offering policy

  16. RETRO Program, Washington State. Chestnut (1993) • Washington Farm Bureau managed a voluntary RETRO program for farmers who employ workers • Mandatory safety inspection • Members of the program shared cost savings • Significant savings ($3M) reported in 1993

  17. NY Agricultural Hazard Abatement and Training. Abend (1998) • Correction of at least 5 hazards; two training sessions; up to a 14% rebate in workers compensation insurance • Pre- and post-training surveys, monthly training reports • 6.1 training sessions per farm conducted during 6-month study period • 27% decrease in workers compensation claims • Significant changes in attitudes and beliefs

  18. Farmers Workers Compensation No-Claims Bonus, Finland. • Implemented in mandatory Farmers workers compensation program on July 1, 1997 • Personal 10% reduction in workers compensation insurance each claim-free year up to 50% level • Time series study: over 10% reduction in injury trend after the intervention • The reduction was not limited to minor injuries

  19. Comprehensive Occupational Health and Safety Programs Involving Incentives

  20. Certified Safe Farm Program. Donham et al. 2000 Concept: • Health screening –> Detect illnesses at early stage • Farm review -> Identify and remove hazards • Education -> Improve awareness, safe behaviors • Financial Incentive -> Create motivation to participate

  21. Percent of persons who had 3 or more of the following symptoms after a dust exposure: fever, shivering muscle or joint aches, tiredness, weakness, cough, chest tightness, and shortness of breath

  22. Injury and Health Outcome Rates(Quarterly Calls 99-00) Includes Injuries, Near Misses, and All Reported Health Problems

  23. Farmers Occupational Health Service Program, Finland • FOHS available for all farmers since 1985. • Includes health screening, farm visit, education, consultation • About 250 general health centers trained to offer FOHS • 37,000 (34%) members in 2000 • Since 1999, 20% discount for members in mandatory workers compensation insurance • The insurance incentive increased participation and interest in the program.

  24. Occupational Health Service Program, Norway. Engesaeter (2000) • 5069 Members in 1999 • Health centers have a contract with central organization to provide services locally • Staff: Nurse, physiotherapist, IH, extension agent, advisory group • Services: health screening, farm visit, educational events, consultation • Strong support by farmers, steady growth, some positive results in injuries • Insurance rate discounts for members

  25. Ag at Risk Recommendations Occupational Health and Safety Delivery Initiatives; • Cost sharing arrangements with farmers, insurance, hospitals, communities C Coalition Initiatives; • Involvement of private sector with health providers, state agencies; modified insurance rates, discounting safety equipment, low rate loans B

  26. Recommendations • Develop initiatives using adjusted insurance rates as incentives • Conduct further evaluations of incentive based comprehensive programs • Conduct economic research quantifying the benefits from lowered injury and illness risk to farmers, agribusiness and governmental organizations • Develop policy and business models to implement incentive programs • Expand ROPS at cost programs and State support for retrofitting as part of ROPS policy initiatives

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