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Price volatility, market regulation and risk management: challenges for the future of the CAP

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  • Chatellier, Vincent

Abstract

This article provides an analysis of the European Commission’s proposals (18 Novembre 2010) regarding the next CAP reform. It proposes a reflection centered on the volatility of agricultural prices, the market regulation mechanisms and the risk management tools (the important question of direct payment to farmers is not included here). The first section deals with the factors underlying the volatility of agricultural prices, the effects of these factors on an international scale and ways of better managing volatility through enhanced international coordination of policies associated with agriculture. The second concerns the European tools that could be mobilised to accompany and support the envisaged strategies on a more global scale. Arguments are then developed around the following topics: customs duties, export refunds, safety nets, futures markets, fiscal policies and income stabilisation tools.

Suggested Citation

  • Chatellier, Vincent, 2011. "Price volatility, market regulation and risk management: challenges for the future of the CAP," Working Papers 208110, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    • Handle: RePEc:ags:inrasl:208110
    DOI: 10.22004/ag.econ.208110
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    Cited by:

    1. Pontrandolfi, A. & Capitanio, F. & Enjolras, G. & Goodwin, B., 2014. "Analysis of the factors used by farmers to manage risk. A case study on Italian farms," Politica Agricola Internazionale - International Agricultural Policy, Edizioni L'Informatore Agrario, vol. 2014(4).
    2. Rosa, Franco & Vasciaveo, Michela & Weaver, Robert D., 2014. "Agricultural and oil commodities: price transmission and market integration between US and Italy," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 3(2), pages 1-25, August.
    3. Chatellier, Vincent & Guyomard, Herve, 2012. "The October 2011 Legislative Proposals for CAP Reform: A French Point of View," 126th Seminar, June 27-29, 2012, Capri, Italy 126988, European Association of Agricultural Economists.
    4. Santeramo, Fabio Gaetano & Capitanio, Fabian & Adinolfi, Felice, 2014. "Integrating Agricultural Risks Management Strategies in selected EU Partner Countries: Syria, Tunisia, Turkey," MPRA Paper 58935, University Library of Munich, Germany, revised 2014.
    5. Pontrandolfi, Antonella, 2013. "Risk management tools in agriculture: some reflections on the opportunities and limitations of the European Commission proposal," Politica Agricola Internazionale - International Agricultural Policy, Edizioni L'Informatore Agrario, vol. 2013(2), April.

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    More about this item

    Keywords

    Agricultural Finance; Risk and Uncertainty;

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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