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Evaluation of risk management tools for stabilising farm income under CAP 2014-2020

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  • Castañeda-Vera, Alba
  • Garrido, Alberto

Abstract

Guaranteeing farm income stability is an objective of the European Union’s and the Spanish agricultural policies. In this paper, CAP direct payments, diversification, crop insurance and an Income Stabilisation Tool (IST) were compared considering (i) their effect on farm income and income stability, (ii) the expected farmers’ willingness for adoption, and (iii) the efficiency of public expenditure invested in supporting them. Main conclusions point at direct payments and crop diversification as the most effective measures in decreasing income variability. Nevertheless, using crop insurance or an IST has potential for both improving farm resilience to income variability and limiting public expenditure

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  • Castañeda-Vera, Alba & Garrido, Alberto, 2017. "Evaluation of risk management tools for stabilising farm income under CAP 2014-2020," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 17(01), June.
    • Handle: RePEc:ags:earnsa:257984
    DOI: 10.22004/ag.econ.257984
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    2. Trestini, Samuel & Giampietri, Elisa & Smiglak-Krajewska, Magdalena, 2018. "Farmer behaviour towards the agricultural risk management tools provided by the CAP: a comparison between Italy and Poland," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 271978, European Association of Agricultural Economists.
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    4. Kovačević, Vlado & Jeločnik, Marko, 2019. "Development of risk management instruments in the EU," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 309063, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    5. Dardonville, Manon & Urruty, Nicolas & Bockstaller, Christian & Therond, Olivier, 2020. "Influence of diversity and intensification level on vulnerability, resilience and robustness of agricultural systems," Agricultural Systems, Elsevier, vol. 184(C).
    6. Kovačević, Vlado & Jeločnik, Marko, 2019. "Development of risk management instruments in the EU," Rural Areas and Development, European Rural Development Network (ERDN), vol. 16.
    7. Ryszard Kata & Małgorzata Wosiek, 2024. "Income Variability of Agricultural Households in Poland: A Descriptive Study," Agriculture, MDPI, vol. 14(3), pages 1-17, February.
    8. Atomu Nitta & Yasutaka Yamamoto & Simone Severini & Katsunobu Kondo & Daisuke Sawauchi, 2022. "Effects of direct payments on rice income variability in Japan," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(1), pages 118-135, January.
    9. Zinnanti, Cinzia & Schimmenti, Emanuele & Borsellino, Valeria & Paolini, Giulio & Severini, Simone, 2019. "Economic performance and risk of farming systems specialized in perennial crops: An analysis of Italian hazelnut production," Agricultural Systems, Elsevier, vol. 176(C).
    10. Harkness, Caroline & Areal, Francisco J. & Semenov, Mikhail A. & Senapati, Nimai & Shield, Ian F. & Bishop, Jacob, 2021. "Stability of farm income: The role of agricultural diversity and agri-environment scheme payments," Agricultural Systems, Elsevier, vol. 187(C).
    11. Agnė Žičkienė & Rasa Melnikienė & Mangirdas Morkūnas & Artiom Volkov, 2022. "CAP Direct Payments and Economic Resilience of Agriculture: Impact Assessment," Sustainability, MDPI, vol. 14(17), pages 1-24, August.
    12. Simone Severini & Giuliano Di Tommaso & Robert Finger, 2019. "Effects of the Income Stabilization Tool on farm income level, variability and concentration in Italian agriculture," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 7(1), pages 1-22, December.

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