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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

Suggested Citation

  • 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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    3. Giampietri, Elisa & Yu, Xiaohua & Trestini, Samuele, 2020. "The role of trust and perceived barriers on farmer’s intention to adopt risk management tools," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 9(1), April.
    4. Kovačević, Vlado & Jeločnik, Marko, 2019. "Development of risk management instruments in the EU," Rural Areas and Development, European Rural Development Network (ERDN), vol. 16.
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    7. 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.
    8. 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).
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    10. 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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