6533b86ffe1ef96bd12ce011

RESEARCH PRODUCT

EU income stabilization tool: potential impacts, financial sustainability and farmer’s risk aversion

Simone SeveriniCinzia ZinnantiEmanuele SchimmentiValeria Borsellino

subject

HD9000-9495Mutual FundEconomics and EconometricsPublic economicsExpected utilitybusiness.industryRisk aversionNutrition. Foods and food supplySample (statistics)Agricultural industriesGross marginAgricultural and Biological Sciences (miscellaneous)Risk managementAgricultureFinancial sustainabilitySettore AGR/01 - Economia Ed Estimo Ruralemedia_common.cataloged_instanceTX341-641European unionbusinessCommon Agricultural PolicyRisk managementExpected utility hypothesisFood Sciencemedia_common

description

AbstractThe Income Stabilization Tool, a risk management scheme introduced within the Common Agricultural Policy (CAP) 2014–2020, could help European Union farmers manage the income risks they face. This study assesses the potential impact of implementing this tool through the maximum level of contribution to the fund which determines an indifference to participate in the fund and its financial sustainability. The study relies on an expected utility approach and assesses the variability of loss ratios over time using a sample of Italian hazelnut farms as a case study. The participation depends on the level of farmers' contributions and their degree of risk aversion. However, the CAP public support makes the scheme financially sustainable.

yearjournalcountryeditionlanguage
2021-11-09
10.1186/s40100-021-00205-4http://hdl.handle.net/10447/534024