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Mutual Funds and the Income Stabilisation Tool in the EU: Retrospect and Prospects

Author

Listed:
  • Jean Cordier

    (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST)

  • Fabio Santeramo

    (Department of Agricultural Economics - Sindh Agriculture University Tandojam)

Abstract

Higher frequency and intensity of extreme weather events have increased farmers' risk exposure, which has increased the need for integrated risk management. EU Regulation No. 1305/2013 allows subsidies for insurance instruments, for mutual funds compensating production losses, and for mutual funds to compensate for income losses. The EU toolkit in this respect has been largely under‐utilised, and an integrated EU policy for risk management has not been developed. Comparing the situation in different EU Member States leads to conclusions on options for EU policymakers to consider. The existing EU technical documents explaining the content and details do not provide clear explanations and interpretation of the current regulations and so more efficient guidelines for Mutual Funds and sectoral Income Stabilisation Tools should be developed. This could be facilitated by establishing a platform for public consultation, knowledge sharing and learning which would include stakeholders, farmers unions' representatives and academics, to help the process of building shared experiences or even common benchmarks. The platform would be part of a dissemination and innovation effort to capitalise knowledge in a learning curve and would act as a catalyst for the implementation of MFs and ISTs.

Suggested Citation

  • Jean Cordier & Fabio Santeramo, 2019. "Mutual Funds and the Income Stabilisation Tool in the EU: Retrospect and Prospects," Post-Print hal-02068371, HAL.
    • Handle: RePEc:hal:journl:hal-02068371
    DOI: 10.1111/1746-692X.12210
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    References listed on IDEAS

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    1. F. G. Santeramo & B. K. Goodwin & F. Adinolfi & F. Capitanio, 2016. "Farmer Participation, Entry and Exit Decisions in the Italian Crop Insurance Programme," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 639-657, September.
    2. Ramsey, Austin Ford & Santeramo, Fabio Gaetano, 2017. "Crop Insurance in the European Union: Lessons and Caution from the United States," MPRA Paper 79164, University Library of Munich, Germany.
    3. Fabio G Santeramo, 2019. "I Learn, You Learn, We Gain Experience in Crop Insurance Markets," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(2), pages 284-304, June.
    4. Fabio G. Santeramo & A. Ford Ramsey, 2017. "Crop Insurance in the EU: Lessons and Caution from the US," EuroChoices, The Agricultural Economics Society, vol. 16(3), pages 34-39, December.
    5. Miranda P.M. Meuwissen & Tsion Taye Assefa & Marcel A.P.M. Asseldonk, 2013. "Supporting Insurance in European Agriculture: Experience of Mutuals in the Netherlands," EuroChoices, The Agricultural Economics Society, vol. 12(3), pages 10-16, December.
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    Cited by:

    1. Popp, Thies R. & Feindt, Peter H. & Daedlow, Katrin, 2021. "Policy feedback and lock-in effects of new agricultural policy instruments: A qualitative comparative analysis of support for financial risk management tools in OECD countries," Land Use Policy, Elsevier, vol. 103(C).
    2. 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.
    3. Tappi, Marco & Nardone, Gianluca & Santeramo, Fabio Gaetano, 2022. "On the relationships among durum wheat yields and weather conditions: evidence from Apulia region, Southern Italy," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.
    4. 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.
    5. Ole Boysen & Kirsten Boysen-Urban & Alan Matthews, 2021. "Alternative EU CAP Tools for Stabilising Farm Incomes in the Era of Climate Change," Working Papers 202103, Geary Institute, University College Dublin.
    6. Antonioli, Federico & Santeramo, Fabio Gaetano, 2022. "On Policy Interventions and Vertical Price Transmission: The Italian Milk Supply Chain Case," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(2), May.
    7. Fabio G., Santeramo & Ilaria, Russo & Emilia, Lamonaca, 2022. "Italian subsidised crop insurance: what the role of policy changes," MPRA Paper 115299, University Library of Munich, Germany.
    8. Santeramo, Fabio Gaetano & Maccarone, Irene, 2022. "Analisi storica delle rese agricole e la variabilità del clima: Analisi dei dati italiani sui cereali [Historical crop yields and climate variability: analysis of Italian cereal data]," MPRA Paper 114135, University Library of Munich, Germany, revised 04 Aug 2022.
    9. 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).
    10. Laurent Piet & M Benoit & V Chatellier & K. Hervé Dakpo & N Delame & Yann Desjeux & P Dupraz & M Gillot & Philippe Jeanneaux & C Laroche-Dupraz & A Ridier & E Samson & P Veysset & P Avril & C Beaudoui, 2020. "Hétérogénéité, déterminants et trajectoires du revenu des agriculteurs français," Working Papers hal-02877320, HAL.
    11. Kovačević, Vlado & Jeločnik, Marko, 2019. "Development of risk management instruments in the EU," Rural Areas and Development, European Rural Development Network (ERDN), vol. 16.
    12. Marco Rogna & Günter Schamel & Alex Weissensteiner, 2023. "Modelling the switch from hail insurance to antihail nets," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(1), pages 118-136, January.
    13. 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.
    14. Laurent Piet & Vincent Chatellier & Nathalie Delame & Yann Desjeux & Philippe Jeanneaux & Catherine Laroche-Dupraz & Aude Ridier & Patrick Veysset, 2021. "Hétérogénéité, déterminants et soutien du revenu des agriculteurs français," Post-Print hal-03405184, HAL.
    15. 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.
    16. Ole Boysen & Kirsten Boysen‐Urban & Alan Matthews, 2023. "Stabilizing European Union farm incomes in the era of climate change," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(3), pages 1634-1658, September.
    17. 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.
    18. 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.
    19. Bertolozzi-Caredio, Daniele & Bardají, Isabel & Garrido, Alberto & Berry, Robert & Bijttebier, Jo & Gavrilescu, Camelia & Harizanova, Hristina & Jendrzejewski, Błażej & Meuwissen, Miranda M.P. & Ollen, 2021. "Stakeholder perspectives to improve risk management in European farming systems," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 84, pages 147-161.

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    More about this item

    Keywords

    Prospects Income Stabilisation Tool;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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