An impact assessment of EU's CAP income stabilisation payments

To help farmers cope with increased income volatility, the EU may be introducing a farm income stabilisation payment in the post-2013 CAP. This payment would generally cover dramatic risk exceptionally leading to more than 30 per cent of income losses. This paper applies a model for a risk-averse farm producer facing output price, yield and policy uncertainty, to examine the impacts of the potential implementation of such payments in French crop specialist farms. The proposed scheme reduces farm income volatility, after 5 and 10 years, respectively by 2.08% and 1.19%. Interestingly, the proposed scheme reduces volatility in farm investments by about 11.45% after 5 years.


Issue Date:
2013
Publication Type:
Conference Paper/ Presentation
Record Identifier:
http://ageconsearch.umn.edu/record/149691
PURL Identifier:
http://purl.umn.edu/149691
Total Pages:
12
JEL Codes:
Q12; Q18
Series Statement:
Paper
2072




 Record created 2017-04-01, last modified 2018-01-22

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