Income Stabilisation in European Agriculture: Design and Economic Impact of Risk Management Tools

Miranda P.M. Meuwissen, Marcel A.P.M. van Asseldonk, Ruud B.M. Huirne (editors), 2008

Abstract

• “www.incomestabilisation.org: We first quantify the risk exposure of farm households in a selection of established and new Member States of the European Union. Individual farm data are analysed as well as data on off-farm incomes. Next, we study the impact of future CAP and WTO scenarios on farmers’ risk exposure and (allowed forms of) risk management. A farm-level simulation model illustrates the impact of various scenarios on income volatility and crisis risk. Thirdly, the project reviews successes and failures of historic and current risk management instruments, both within EU Member States as well as in non-EU countries. The review is based on reported results in literature completed with up to date views from experts. Next, we deal with farmers’ perceptions. (New) risk management instruments may fail if there is little interest of farmers, for instance because they perceive risks to be small, believe governments to intervene, or just find the instrument too costly. The economic impact of prospective risk management instruments, both at farm level and in terms of budgetary consequences, is quantified with a risk-programming and a simulation model respectively.”

Comment

• Edited book that is sometimes very technical: interesting for specialists