An impact assessment of EU's CAP income stabilisation payments

Sébastien Mary, Ashok Mishra () and Sergio Gomez Y Paloma

No 149691, 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. from Agricultural and Applied Economics Association

Abstract: 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.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Pages: 12
Date: 2013
New Economics Papers: this item is included in nep-agr
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea13:149691

DOI: 10.22004/ag.econ.149691

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