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Potential effects of the income stabilisation tool (IST) in Swiss agriculture

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  • Nadja El Benni
  • Robert Finger
  • Miranda P.M. Meuwissen

Abstract

We extend the existing literature on the income stabilisation tool (IST) by investigating the influence of farm and farmers' characteristics on potential indemnification applying double-hurdle models on a rich panel data set on Swiss farms. We find more likely and higher indemnifications for part-time and low-income farmers. Thus, the IST might become a new transfer instrument hampering the structural change. Even though the estimated costs of the IST are low compared with the current direct payment level in Switzerland, both policy measures are partly substitutes with respect to income risk reductions implying more frequent and higher indemnification through the IST if direct payments are reduced.

Suggested Citation

  • Nadja El Benni & Robert Finger & Miranda P.M. Meuwissen, 2016. "Potential effects of the income stabilisation tool (IST) in Swiss agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 43(3), pages 475-502.
  • Handle: RePEc:oup:erevae:v:43:y:2016:i:3:p:475-502.
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    File URL: http://hdl.handle.net/10.1093/erae/jbv023
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    Cited by:

    1. Ruggiero Rippo & Simone Cerroni, 2023. "Farmers' participation in the Income Stabilisation Tool: Evidence from the apple sector in Italy," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 273-294, February.
    2. Finger, Robert & Möhring, Niklas & Dalhaus, Tobias & Böcker, Thomas, 2017. "Revisiting Pesticide Taxation Schemes," Ecological Economics, Elsevier, vol. 134(C), pages 263-266.
    3. Martina Bozzola & Robert Finger, 2021. "Stability of risk attitude, agricultural policies and production shocks: evidence from Italy," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(3), pages 477-501.
    4. Kulawik, Jacek & Płonka, Renata & Wieliczko, Barbara, 2020. "Changes in The Income Situation of Agricultural Holdings in The Light of The Polish FADN Observations from 2004-2018," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 311271, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    5. Abel Tiemtore, 2021. "Examining the effects of agricultural income insurance on farmers in Burkina Faso," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 46(3), pages 422-439, July.
    6. Mauro Vigani & Jonas Kathage, 2019. "To Risk or Not to Risk? Risk Management and Farm Productivity," American Journal of Agricultural Economics, John Wiley & Sons, vol. 101(5), pages 1432-1454, October.
    7. Soliwoda, Michał & Kulawik, Jacek & Góral, Justyna, 2016. "Stabilizacja dochodów rolniczych. Perspektywa międzynarodowa, Unii Europejskiej i Polski," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 3(172), January.
    8. Bozzola, Martina & DiFalco, Salvatore & Finger, Robert, 2017. "Time variant risk preferences in agriculture: evidences from Italy," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258365, Agricultural and Applied Economics Association.
    9. Möhring, Niklas & Dalhaus, Tobias & Enjolras, Geoffroy & Finger, Robert, 2020. "Crop insurance and pesticide use in European agriculture," Agricultural Systems, Elsevier, vol. 184(C).
    10. Kovačević, Vlado & Jeločnik, Marko, 2019. "Development of risk management instruments in the EU," Rural Areas and Development, European Rural Development Network (ERDN), vol. 16.
    11. Kamel Louhichi & Daël Merisier, 2023. "Potential impacts of the Income Stabilisation Tool on farmers' income and crop diversity: a French case study [Impacts potentiels de l'outil de stabilisation des revenus sur les revenus des agricul," Post-Print hal-04195630, HAL.
    12. Daria Loginova & Marco Portmann & Martin Huber, 2021. "Assessing the Effects of Seasonal Tariff‐rate Quotas on Vegetable Prices in Switzerland," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 607-627, June.
    13. 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.
    14. 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.
    15. Robert Finger & Nadja El Benni, 2021. "Farm income in European agriculture: new perspectives on measurement and implications for policy evaluation," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(2), pages 253-265.
    16. Niklas Möhring & Martina Bozzola & Stefan Hirsch & Robert Finger, 2020. "Are pesticides risk decreasing? The relevance of pesticide indicator choice in empirical analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 51(3), pages 429-444, May.
    17. 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.
    18. Luigi Biagini & Simone Severini, 2022. "Can Machine Learning discover the determining factors in participation in insurance schemes? A comparative analysis," Papers 2212.03092, arXiv.org, revised Dec 2022.
    19. 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.
    20. Duden, C. & Offermann, F., 2019. "Farmers' risk exposition and its drivers," 171st Seminar, September 5-6, 2019, Zürich, Switzerland 333722, European Association of Agricultural Economists.
    21. 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.
    22. Bousebata, Meryem & Enjolras, Geoffroy & Girard, Stéphane, 2020. "The dependence structure between yields and prices: A copula-based model of French farm income," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304313, Agricultural and Applied Economics Association.
    23. Zhongqiong Qu & Yongxin Wei & Xun Li, 2021. "Risk Perception of Rural Land Supply Reform in China: From the Perspective of Stakeholders," Agriculture, MDPI, vol. 11(7), pages 1-25, July.

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