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Perspectives on Addressing Market Instability and Income Risk for Farmers

  • Alan Matthews

    ()

    (Trinity College Dublin)

Successive reforms of the EU’s Common Agricultural Policy since 1992 have gradually switched support from market and price management to direct payments, which since 2005 are largely decoupled. This more market-oriented CAP means that farmers must now take responsibility for managing those risks that were formerly absorbed by market and price support policies. There is a vigorous debate on how to adapt the CAP to help farmers and the food chain cope better with risk and crisis management. This paper reviews the possible policy options and proposes an extended role for Member States to address agricultural income instability through either enhanced income insurance or income safety net schemes.

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Paper provided by IIIS in its series The Institute for International Integration Studies Discussion Paper Series with number iiisdp324.

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Length: 31 pages
Date of creation: Apr 2010
Date of revision: Apr 2010
Handle: RePEc:iis:dispap:iiisdp324
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  1. Mahul, Olivier & Wright, Brian D., 2000. "Designing Optimal Crop Revenue Insurance," 2000 Annual meeting, July 30-August 2, Tampa, FL 21729, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Cuddy, John D A & Della Valle, P A, 1978. "Measuring the Instability of Time Series Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 40(1), pages 79-85, February.
  3. Carlo Cafiero & Fabian Capitanio & Antonio Cioffi & Adele Coppola, 2007. "Risk and Crisis Management in the Reformed European Agricultural Policy," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 55(4), pages 419-441, December.
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