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An Ex-Ante Assessment of CAP Income Stabilisation Payments using a Farm Household Model

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  • Mary, Sebastien
  • Santini, Fabien
  • Boulanger, Pierre

Abstract

Common Agricultural Policy (CAP) reforms over the last two decades have increased the sensitivity of EU farm incomes to market fluctuations. Following legal proposals from the European Commission, an income stabilisation tool may be introduced during the 2014-2020 period. From a theoretical perspective, it is not possible to evaluate a priori how farmers will actually respond in terms of input and output allocation to such measures and therefore what the impacts on farm income will be. This paper assesses the potential implementation of these payments using a farm household model calibrated to French cereal farms.

Suggested Citation

  • Mary, Sebastien & Santini, Fabien & Boulanger, Pierre, 2013. "An Ex-Ante Assessment of CAP Income Stabilisation Payments using a Farm Household Model," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158860, Agricultural Economics Society.
    • Handle: RePEc:ags:aesc13:158860
    DOI: 10.22004/ag.econ.158860
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    References listed on IDEAS

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    Cited by:

    1. Feng, Siyi & Patton, Myles & Binfield, Julian C.R. & Davis, John, 2014. "Assessing the costs of risk management tools: A crop insurance scenario based on a stochastic partial equilibrium model approach," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 170538, Agricultural Economics Society.
    2. ZGAJNAR, Jaka, 2016. "Simulation Model Based On Iacs Data; Alternative Approach To Analyse Sectoral Income Risk In Agriculture," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 19(1), pages 1-9, April.
    3. Loughrey, Jason & Thorne, Fiona & Hennessy, Thia, 2015. "The Direct Impact of Risk Management Tools on Farm Income: The Case of Irelands Spring Barley Producers," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204228, Agricultural Economics Society.
    4. 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.
    5. Klimkowski, Cezary, 2016. "Farm Income Stabilization Effectiveness And Income Stabilization Tool," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 41(3).
    6. Jason Loughrey & Fiona Thorne & Thia Hennessy, 2016. "A Microsimulation Model for Risk in Irish Tillage Farming," International Journal of Microsimulation, International Microsimulation Association, vol. 9(2), pages 41-76.
    7. Severini, Simone & Biagini, Luigi & Finger, Robert, 2019. "Modeling agricultural risk management policies – The implementation of the Income Stabilization Tool in Italy," Journal of Policy Modeling, Elsevier, vol. 41(1), pages 140-155.
    8. 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.
    9. Mary, Sebastien & Mishra, Ashok K. & Paloma, Sergio Gomez y, 2013. "An impact assessment of EU's CAP income stabilisation payments," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149691, Agricultural and Applied Economics Association.
    10. Luigi Biagini & Simone Severini, 2021. "The role of Common Agricultural Policy (CAP) in enhancing and stabilising farm income: an analysis of income transfer efficiency and the Income Stabilisation Tool," Papers 2104.14188, arXiv.org.
    11. Simone Severini & Cinzia Zinnanti & Valeria Borsellino & Emanuele Schimmenti, 2021. "EU income stabilization tool: potential impacts, financial sustainability and farmer’s risk aversion," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-21, December.

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